Which of the Following Statements Regarding FICA Taxes Is True

question 66

Multiple Choice

Which of the following statements regarding FICA taxes is true?

• A)Low income employees are not required to pay FICA taxes.
• B)An employee who has two different employers during the year may be entitled to a tax credit for overpaid FICA taxes.
• C)The maximum amount of Medicare taxes an employee is required to pay is capped each year but the maximum amount of Social Security taxes is not.
• D)The wage base limit for Social Security taxes depends on the taxpayer's filing status.The cap on Social Security taxes applies to the taxpayer even if the taxpayer had more than one employer.Employers withhold on the salary they individually pay so in the aggregate if the taxpayer earns more than the Social Security wage base limit via multiple jobs,there may be more withheld than the taxpayer is required to pay.

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