How are Social Security benefits funded?
A)employers are taxed on the amount of wages and salaries paid to employees
B)a tax on employee wages and salaries, paid by the employee
C)a tax on employee wages and salaries, paid by employers and employees
D)general federal tax revenues

Question

Quizplus · Accepted Answer

Social Security benefits are funded through a tax on employee wages and salaries, which is paid by both the employer and the employee. This tax is known as the Federal Insurance Contributions Act (FICA) tax. Employers are responsible for withholding the employee's share of the tax from their paycheck and sending it to the government, along with their own contribution. This ensures that all workers pay into the system and helps to finance Social Security benefits for retired, disabled, and deceased workers, as well as their dependents.

How Are Social Security Benefits Funded