Which Statement Is Not True of Social Security Taxes

question 57

Multiple Choice

Which statement is not true of Social Security taxes?

• A)There is an annually determined limit on the income that is subject to social security taxes.
• B)They must also be paid by self-employed individuals.
• C)They cannot be deducted as an itemized expense on your individual income tax return.
• D)They have a progressive rate structure similar to that of the personal income tax.

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Definitions:

Accounts Payable

A liability to a creditor, carried on open account, usually for purchases of goods and services.

Notes Payable

Financial obligations represented by formal written agreements to pay specified amounts at determined future dates.

Salaries and Wages Payable

Salaries and wages payable are current liabilities recorded on a company's balance sheet, representing the amount owed to employees for work performed that has not yet been paid.

Taxes Payable

Liabilities owed to government entities, representing taxes due to be paid by individuals or organizations.