Business, 14.02.2020 05:24 seasmarie75

The portion of the Federal Insruance Contributions Act (FICA) tax paid by employers is 7.65 percent and the portion paid by employees is 7.65 percent (for a total of 15.3 percent).
Suppose that absent FICA taxes, workers receive a competitive equilibrium wage of $10.00 per hour and that with FICA taxes divided equally between employers and employees, the market wage is $9.52 per hour. What is the incidence of the FICA tax? For simplicity, assume employers pay $0.765 in FICA taxes and workers pay $0.765 in FICA taxes for a total of $1.53.
In this example, works pay percent of the FICA tax and employers pay ___ of this tax. (Enter your responses rounded to one decimal places.)

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The portion of the Federal Insruance Contributions Act (FICA) tax paid by employers is 7.65 percent...