Which of the following statements regarding Social Security tax is false? a. Social Security tax...
Question:
Which of the following statements regarding Social Security tax is false?
a. Social Security tax was first levied on employees in 1937.
b. All earnings of an employee that exceed the taxable wage base in a single year are not subject to Social Security tax.
c. Social Security tax is also referred to as OASDI tax because it was initially established to benefit retired employees, survivors of employees, and disabled employees.
d. Contributions to cafeteria plans are not taxable for Social Security tax.
Social Security Tax:
Social Security Tax is a tax paid by the employees and the employer to the Federal Government in order to give them a minimum income when the time comes that they need to retire from their jobs.
Answer and Explanation:
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Social Insurance Programs for Older Adults
from
Chapter 30 / Lesson 5
992
Social insurance programs protect older adults from economic risks and poverty. Explore the background of the Social Security Act of 1935, including the hard times of the Great Depression that made it a necessity.
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