Asked by Siavash Namdari on Jun 24, 2024
Verified
The FICA (social security)tax is a matching tax with a portion paid by both the employer and the employee.
FICA
The Federal Insurance Contributions Act (FICA) is a U.S. law that mandates a payroll tax on both employees and employers to fund Social Security and Medicare programs.
Social Security
A government program that provides financial benefits to retirees, disabled workers, and their families.
- Understand the FICA tax responsibilities of both the employer and the employee.
Verified Answer
PS
PBRH SURAYA BINTI MISLANJun 26, 2024
Final Answer :
True
Explanation :
The FICA tax is indeed a matching tax, with both the employer and the employee contributing a portion of the tax. Currently, the rate is 6.2% for Social Security up to a certain income limit, with the employer and the employee each paying 6.2%. The tax also includes a 1.45% Medicare tax, with the employer and employee each paying 1.45% for a combined total of 2.9%.
Learning Objectives
- Understand the FICA tax responsibilities of both the employer and the employee.