Which of the Following Statements Is/are True About Social Security

question 8

Multiple Choice

Which of the following statements is/are true about Social Security tax deductions from gross pay? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box
For a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

• A) The wage base is $132,900.
• B) The tax is computed on all earnings.
• C) The tax rate is 6.0%.
• D) Section 125 deductions are not subject to Social Security tax.

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Definitions:

Operating Assets

Assets used by a business in its operational activities to generate revenue, excluding investment and non-operational assets.

Operating Assets

Assets that are used in the day-to-day operations of a business to generate revenue, such as machinery, buildings, and equipment.

Minimum Required Rate

The lowest return on investment that an investor is willing to accept, often influenced by the risk-free rate and the investor's risk tolerance.

Net Operating Income

The profit from a company's operations after subtracting operating expenses from gross income.