Asked by Chamil Bruno on May 19, 2024
Verified
Which of the following statements about the Social Security tax is not true?
A) It is a regressive tax.
B) It is imposed on employees only.
C) It is a payroll tax.
D) It came into existence in 1935.
Regressive Tax
A levy where the rate diminishes as the taxable amount grows.
Payroll Tax
Fees levied on employers or their employees, customarily figured as a percentage of what staff are paid.
- Comprehend the function and processes behind Social Security and payroll taxes.
Verified Answer
PD
Pharmacist DanyalMay 24, 2024
Final Answer :
B
Explanation :
The statement that the Social Security tax is imposed on employees only is not true. The tax is actually split between employers and employees, with each party responsible for paying a portion of the tax.
Learning Objectives
- Comprehend the function and processes behind Social Security and payroll taxes.