Special taxes levied on earnings for Social Security and Medicare are called

Question

Quizplus · Accepted Answer

These taxes are specifically meant to fund Social Security and Medicare programs and are levied on both employees and employers. They are commonly referred to as social insurance taxes. Option A is incorrect because withholding tax on wages refers to the amount of federal income tax an employer withholds from an employee's pay. Option C is incorrect because these taxes are imposed on all employees and employers regardless of their income. Option D is incorrect because these taxes apply to both individuals and corporations.

Special Taxes Levied on Earnings for Social Security and Medicare