All of the following statements regarding FICA taxes are true except:
A)FICA taxes are deducted from the employee.
B)Employers must pay withheld FICA taxes to the IRS.
C)The amount of FICA deducted from the employee is credited to a liability account.
D)A self-employed person is exempt from FICA taxes.
E)An employer must pay FICA taxes equal to the amount withheld from the employee.

Question

Quizplus · Accepted Answer

The statement that a self-employed person is exempt from FICA taxes is false. Self-employed individuals are responsible for paying both the employee and employer portion of FICA taxes, which is often referred to as self-employment tax.

All of the Following Statements Regarding FICA Taxes Are True