A Characteristic of FICA Is That

question 136

Multiple Choice

A characteristic of FICA is that:

• A)It is imposed only on the employer.
• B)It applies when one spouse works for the other spouse.
• 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 the above.

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Definitions:

Equal Payments

Regular payments of the same amount made over a specified period, often used in loans and annuities.

Loan Repaid

The process of paying back borrowed money to the lender, typically including both the original principal amount and accrued interest.

Simple Annual Rate

The interest rate without compounding, indicating the flat yearly cost of borrowing or the annual rate of interest paid on an investment.

Interest Earned

Interest earned is the amount of money gained as interest from savings accounts, investments, or bonds over a certain period.