The Social Security Administration increased the taxable wage base from $106,800 to $110,100. The 6.2% tax rate is unchanged. Joe Burns earned over $120,000 each of the past two years.a.What is the percent increase in the base?(Round your answer to the nearest hundredth percent.)Percent increase%b.What is Joe’s increase in Social Security tax for the new year?(Round your answerto the nearest cent.)Increase in social security tax$

Answer:The Social Security Administration increased the taxable wage base from $106,800 to $110,100. A: The percent increase in the base =[tex]\frac{110100-106800}{106800}\times100=3.09[/tex]%B:Previous year tax = [tex]0.062\times106800=6621.60[/tex] dollarsThis year tax = [tex]0.062\times110100=6826.20[/tex] dollarsIncrease in tax = [tex]6826.20-6621.60=204.60[/tex] dollarsHence, Joe’s increase in Social Security tax for the new year is $204.60.