Mrs.Lincoln was employed by GGH Inc.until October,when he accepted a new position with Murdock Inc.Mrs.Lincoln earned $145,000 compensation from GGH and $36,000 compensation from Murdock.Which of the following statements is false?
A) Murdock must withhold Social Security tax from Mrs.Lincoln's $36,000 compensation.
B) Murdock must withhold Medicare tax from Mrs.Lincoln's $36,000 compensation.
C) Mrs.Lincoln is entitled to an income tax credit for both excess Social Security tax and excess Medicare tax withheld by her employers this year.
D) Both GGH and Murdock must pay the full amount of employer payroll tax on the compensation paid to Mrs.Lincoln.
Correct Answer:
Verified
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