Suppose Stockton earns $30,000 per year and Malone earns $60,000 per year.Which of the following statements is FALSE concerning their Social Security taxes?

Question

Quizplus · Accepted Answer

Both Stockton and Malone will pay a Social Security tax, and Stockton will pay Social Security tax on all of his income. However, Malone will not pay Social Security tax on the majority of his income since there is a cap on the amount of income subject to Social Security tax. In 2021, the cap is $142,800, so any income Malone earns above that amount will not be subject to Social Security tax. Therefore, statement C is false. Stockton and Malone will not pay the same Social Security tax rate on their incomes because the tax rate is a percentage of the income subject to tax, not a flat rate.

Suppose Stockton Earns $30,000 Per Year and Malone Earns $60,000