FICA Excludes from Coverage All of the Following Kinds of Employment

question 53

Multiple Choice

FICA excludes from coverage all of the following kinds of employment except :

• A) domestic service performed in a college sorority by a student.
• B) service performed by a 16-year-old child in the employ of the mother.
• C) babysitting service performed by a 35-year-old person who receives $40 in cash during the calendar quarter.
• D) federal government secretaries hired in 1990.
• E) services performed by a railroad worker for an employer covered by the Railroad Retirement Tax Act.

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Definitions:

Extraordinarily Large

A term used to describe a magnitude or amount that significantly exceeds what is common or expected.

Crop

A plant or plant product that is grown and harvested extensively for profit or subsistence.

Cross Elasticity

A measure of how the quantity demanded of one good responds to a price change of another good.

Complementary Goods

Products and services that are used together. When the price of one falls, the demand for the other increases (and conversely).