Asked by Willie Alfaro Mora on May 15, 2024
Verified
Although employers and wage earners each pay 50% of the FICA tax,the tax reduces wages to the extent that the incidence of the tax falls almost entirely on workers.
FICA Tax
A United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, the disabled, and children of deceased workers.
Employers
Individuals or entities that hire and pay others for their labor or services in a variety of employment contexts.
Wage Earners
Individuals who receive compensation for their labor or services in the form of wages or salary.
- Assess the variables that influence the allocation of taxes between purchasers and sellers.
Verified Answer
TH
Tatiana HoyosMay 21, 2024
Final Answer :
True
Explanation :
This is because the employer's share of the tax is considered a cost of employing the worker and is factored into the worker's total compensation package, which ultimately leads to lower take-home pay for the worker. Therefore, the burden of the tax falls mostly on the worker.
Learning Objectives
- Assess the variables that influence the allocation of taxes between purchasers and sellers.