Which of the Following Statements About the FICA Tax Is

question 56

Multiple Choice

Which of the following statements about the FICA tax is not true?

• A)The FICA tax is composed of two parts, Social Security and Medicare.
• B)Self-employed individuals may elect to pay either FICA taxes or self-employment taxes.
• C)FICA taxes are paid by both the employees and their employers.
• D)The income amount subject to the Social Security portion of FICA tax has increased significantly over the years.
• E)Wages subject to FICA tax that are received by a self-employed individual reduce the individual's maximum Social Security tax base.

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Definitions:

Drawer

In banking and finance, the person who writes or issues a check or draft instructing the bank to pay a specified amount of money to a designated party.

Drawee

The party in a financial transaction who is directed to pay a certain sum of money as per the payer's instructions.

Stop Payment Order

A request made to a financial institution to cancel the payment or processing of a check or payment transaction before it has been completed.

90 Days

A period of time consisting of exactly ninety days, often used in reference to deadlines or waiting periods.