In Describing FICA Taxes, Which (If Any) of the Following

question 48

Multiple Choice

In describing FICA taxes, which (if any) of the following statements is incorrect?

• A) The base amounts for 2019 probably will increase from the 2018 amounts.
• B) The base amounts for the Social Security and Medicare portions are the same.
• C) If both spouses work, excess FICA taxes need not result.
• D) Excess FICA taxes can be claimed as an income tax credit.

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Definitions:

Liability

The legal responsibility to settle debts or obligations, which may arise from contracts, torts, or statutory duties.

Management Duties

The responsibilities and tasks assigned to the management of an organization, including decision-making, planning, staffing, directing, and controlling.

Limited Partners

Individuals in a partnership who invest money but are not involved in day-to-day management, and whose liability is limited to the amount of their investment.

General Partnership

A business structure where two or more individuals agree to share in all assets, profits, and financial and legal liabilities of a venture.