The Purpose of the Wage Base Used for the Social

question 57

Multiple Choice

The purpose of the wage base used for the Social Security tax is ________.

• A) to determine when to start withholding the tax from an employee's pay
• B) to determine the amount of Social Security tax to withhold from an employee's pay
• C) to establish a maximum salary level for application of the tax to employee pay
• D) to compute the total amount of Social Security tax that a firm must pay

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