A Characteristic of FICA Is That

question 15

Multiple Choice

A characteristic of FICA is that:

• A)It does not apply when one spouse works for the other spouse.
• B)It is imposed only on the employer.
• C)It provides a modest source of income in the event of loss of employment.
• D)It is administered by both state and Federal governments.
• E)None of these.

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Definitions:

Tax Deductible

Refers to eligible expenses that can be subtracted from taxable income, thereby reducing the total amount of tax owed to the government.

Discount

A reduction in the price of a good or service, typically to encourage purchase.

Cash Interest

The actual amount of interest paid in cash by a borrower during a given period for the use of borrowed funds.