Asked by Gisell Garcia on Jun 14, 2024
Verified
Each year there is a ceiling for the amount that is subject to all of the following except
A) social security tax
B) federal income tax
C) federal unemployment tax
D) state unemployment tax
Social Security Tax
Taxes collected to fund the Social Security program, providing benefits for retirees, the disabled, and children of deceased workers.
Federal Income Tax
A tax levied by the United States Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.
Federal Unemployment Tax
This is a tax paid by employers based on the wages paid to employees, intended to fund state workforce agencies.
- Comprehend the impact of social security and Medicare tax rates on the net income of employees as well as the payroll costs for employers.
Verified Answer
SK
Susanta KumarJun 20, 2024
Final Answer :
B
Explanation :
Federal income tax does not have a ceiling on the amount of income subject to taxation. Unlike Social Security tax, which has a cap on the amount of income subject to tax, federal income tax applies to all income levels, with rates varying based on the income bracket.
Learning Objectives
- Comprehend the impact of social security and Medicare tax rates on the net income of employees as well as the payroll costs for employers.