Asked by Jordan Nolte on Jun 03, 2024
Verified
FICA tax is a payroll tax that is paid only by employers.
FICA Tax
Federal Insurance Contributions Act tax used to finance federal programs for old-age and disability benefits (social security) and health insurance for the aged (Medicare).
Payroll Tax
Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.
- Determine the elements and necessities of FICA taxes and their importance in payroll accounting.
Verified Answer
KP
Kevin PayneJun 09, 2024
Final Answer :
False
Explanation :
FICA tax is a payroll tax that is paid both by employers and employees. It is split into two components, Social Security and Medicare taxes. Employers and employees contribute an equal percentage to both taxes.
Learning Objectives
- Determine the elements and necessities of FICA taxes and their importance in payroll accounting.