All of the Following Statements Regarding FICA Taxes Are True

question 146

Multiple Choice

All of the following statements regarding FICA taxes are true except:

• A)FICA taxes are deducted from the employee.
• B)Employers must pay withheld FICA taxes to the IRS.
• C)The amount of FICA deducted from the employee is credited to a liability account.
• D)A self-employed person is exempt from FICA taxes.
• E)An employer must pay FICA taxes equal to the amount withheld from the employee.

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Definitions:

Wage Rate

The amount of compensation an employee receives in exchange for performing a specific job, typically expressed per hour or year.

Endowment

The value that a property generates for its owner; in economics, it often refers to the initial allocation of goods and resources available to individuals.

Consumption

The consumption of products and services by families or personal users.

Price Change

A fluctuation in the market price of goods, services, or assets, which can be influenced by various factors including supply and demand, market sentiment, and news.