Which of the following statements regarding FICA taxes is true?
A. Low income employees are not required to pay FICA taxes.
B. An employee who has two different employers during the year may be entitled to a tax credit for overpaid FICA taxes.
C. The wage base limit for Social Security taxes depends on the taxpayer's filing status.
D. The maximum amount of Medicare taxes an employee is required to pay is capped each year but the maximum amount of Social Security taxes is not.
Payroll taxes are taxes that are taken out of an employees paycheck. There are a variety of different taxes that have to be accounted for. Some are federal income tax, state income tax, and even something called FICA. It is good to read up on the tax laws to make sure your paycheck is never incorrectly calculated.
Answer and Explanation: 1
When reading this question, there is only one option that is true when it comes to FICA taxes. The correct answer is B. When an employee has two...
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fromChapter 6 / Lesson 18
How does payroll tax work? Learn the payroll tax definition and see the purpose of payroll taxes. See examples of the different types of payroll taxes.