Which of the following statements is not true regarding FICA taxes paid?
A) These taxes fund both Social Security and Medicare.
B) Employers are required to match employee FICA contributions.
C) All FICA taxes apply to your total income.
D) There is a limit on how much of your income will be taxed for Social Security.

Question

Quizplus · Accepted Answer

FICA taxes consist of two parts: Social Security and Medicare. While Medicare taxes apply to all your income without limit, Social Security taxes have a cap, meaning only income up to a certain amount is subject to Social Security taxes each year. This makes statement C incorrect, as it implies all FICA taxes apply to your total income without distinguishing between the two types of taxes.

Which of the Following Statements Is Not True Regarding FICA