For which of the following taxes is there a ceiling on the amount of annual employee earnings subject to the tax?

Question

Quizplus · Accepted Answer

The FICA Social Security tax and the state and federal unemployment taxes have a ceiling on the amount of annual employee earnings subject to the tax. For FICA Social Security tax, the ceiling for 2021 is $142,800, which means any earnings above this amount are not subject to the tax. For state and federal unemployment taxes, the ceiling varies by state, but there is generally a limit on the amount of eligible wages for each employee.

For Which of the Following Taxes Is There a Ceiling