In Describing FICA Taxes, Which (If Any) of the Following

question 64

Multiple Choice

In describing FICA taxes, which (if any) of the following statements is incorrect?

• A)The base amounts for 2020 probably will increase from the 2019 amounts.
• B)The base amounts for the Social Security and Medicare portions are the same.
• C)If both spouses work, excess FICA taxes need not result.
• D)Excess FICA taxes can be claimed as an income tax credit.

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Definitions:

Demographic Segmentation

Segmentation that divides markets by characteristics such as age, gender, income, education, and family size.

Loyalty

The state or quality of being loyal; fidelity to a company, brand, or person, often resulting in repeated business or advocacy.

Price Sensitivity

The degree to which the price of a product affects consumers’ purchasing behavior.

Broad Segmentation Bases

Wide-ranging criteria used to divide a market into distinct customer groups with varying needs, characteristics, or behaviors.