A Characteristic of FICA Is That

question 4

Multiple Choice

A characteristic of FICA is that:

• A) It does not apply when one spouse works for the other spouse.
• B) It is imposed only on the employer.
• C) It provides a modest source of income in the event of loss of employment.
• D) It is administered by both state and Federal governments.
• E) None of the above.

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Definitions:

Form 1040EZ

A simplified federal income tax form for individual taxpayers with straightforward tax situations, no longer in use after the 2018 tax year.

Income Tax Withholding

The process by which employers deduct a portion of employees' wages to pay directly to the government as prepayment for the employees' income tax liabilities.

Tax Liability

The total amount of tax owed by an individual, corporation, or other entity to a taxing authority, after deductions, credits, and exemptions.

Administrative Source

Information collected and maintained as part of the operations of administrative systems or organizations, often used for research or policy development.