A characteristic of FICA is that:
A) It does not apply when one spouse works for the other spouse.
B) It is imposed only on the employer.
C) It provides a modest source of income in the event of loss of employment.
D) It is administered by both state and Federal governments.
E) None of the above.

Question

Quizplus · Accepted Answer

FICA (Federal Insurance Contributions Act) taxes are imposed on both employers and employees to fund Social Security and Medicare, and it is administered by the federal government, not state governments. It does not provide income for loss of employment; that is covered by unemployment insurance.

A Characteristic of FICA Is That