Which of the Following Statements Regarding FICA Taxes Is True

question 54

Multiple Choice

Which of the following statements regarding FICA taxes is True?

• A) Low income employees are not required to pay FICA taxes.
• B) An employee who has two different employers during the year may be entitled to a tax credit for overpaid FICA taxes.
• C) The maximum amount of Medicare taxes an employee is required to pay is capped each year but the maximum amount of Social Security taxes is not.
• D) The wage base limit for Social Security taxes depends on the taxpayer's filing status.

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Definitions:

International Companies

Businesses that operate across national borders, engaging in foreign trade or investment.

Corporate Headquarters

The main office or central hub of an organization where the primary functions and executive management are located.

Power Distribution

The process of distributing electrical power from generation sources to end users, or the allocation of power and authority in an organization.

Storage

The act of retaining or housing goods, information, or data in a designated space or medium for future use.