When Workers Earn Income,they and Their Employer Pay Equal Portions

question 248

Multiple Choice

When workers earn income,they and their employer pay equal portions of FICA (the Federal Insurance Contributions Act) .Which statement is TRUE?

• A)The worker and the employer each bear half of the burden (incidence)of the tax.
• B)The employer bears almost all of the burden of the tax.
• C)The worker bears almost all of the burden of the tax.
• D)It's impossible to determine who bears the burden of the tax.

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Definitions:

Paying For Performance

A compensation strategy that rewards employees based on their job performance, often with bonuses or other incentives.

Good Performance

The act of achieving or exceeding the set standards of tasks or goals in a workplace or educational setting.

Performance Measures

Quantitative or qualitative indicators used to evaluate and track the efficiency, productivity, or success of an individual, team, or organization's outputs.

Deficient

Lacking in some necessary quality or element; insufficient or inadequate.