Who pays the social security taxes that are levied by the federal Insurance contributions Act?
Federal Insurance Contributions Act is a United State based law that is deducted by the employer from the paycheck of the employee, as well as employers, are also required to fund the social security and medical programs. Thus the same is applicable to employee and employers.
In the case of self-employed there is an equivalent law named Self Employed Contributions Act(SECA)
Who pays the social security taxes that are levied by the federal Insurance contributions Act?
The federal Social Security Act A. Does not apply to self-employed persons. B. Excludes professionals such as accountants, lawyers, and doctors. C. Provides for a deduction for Social Security taxes paid by the employee that is available against his or her federal income tax. D. Provides that bonuses and commissions paid as compensation are included as wages in the calculation of employer-employee contributions.
All of the following statements regarding the Social Security system are correct EXCEPT: the law allowing Social Security taxes to be deducted from workers' paychecks is the Federal Insurance Contributions Act the federal Old-Age and Survivors Insurance Trust Fund pays retirement and survivors benefits the two Medicare trust funds are the federal Hospital Insurance Trust Fund for Part A, and the Supplementary Medical Insurance Trust Fund for Part B the Medicare trust funds are not expected to be exhausted anytime...
5. The federal unemployment tax is levied on a. employees and employers. b. employers and is deducted from employees' earnings. c. employees and is deducted from customer payments. d. employers and is not deducted from employees' earnings. 6. A self-employment tax is required of an individual who owns his or her own business and makes a. $400 or more. b. $1 or more. c. $1,000 or more. d. $200 or more. 7. Which of the following tax programs often has...
TRUE/FALSE 1. Social Security taxes are levied equally on the employee and the employer. 2. Employee benefits costs represent expenses to the employer in addition to the direct costs of salaries and wages. .3. Unearned revenues are classified as current liabilities 4. Each time a payroll is recorded, a separate journal entry usually is made to record the employer's FICA and state and federal unemployment taxes. 5. Since Jon Company has very little employee turnover, the company has received a...
The portion of the Federal Insurance Contributions Act (FICA) tax paid by employers is 7.65 percent and the portion paid by employees is 7.65 percent (for a total of 15.3 percent). Suppose that absent FICA taxes, workers receive a competitive equilibrium wage of $10.00 per hour and that with FICA taxes divided equally between employers and employees, the market wage is $9.459.45 per hour. What is the incidence of the FICA tax? For simplicity, assume employers pay $0.765 in FICA...
In an effort to balance the federal budget, an increase in Social Security taxes is passed. What is the most likely effect of this on equilibrium GDP?
The portion of the Federal Insurance Contributions Act (FICA) tax paid by employers is 7 65 percent and the portion paid by employees is 7 65 percent (for a tol of 153 percent Suppose that absent FICA taxes, workers receive a competitive equiibrium wage of $10 00 per hour and that with FICA taxes divided equally between employers and employees, the market wage is $9 52 per hour what is the incidence of the FICA tax? For sn picity ass...
5. Who benefits the most from Social Security? Who pays the most?
Westway Company pays Suzie Chan $2,300 per week. Assume Social Security is 6.2% on $128,400 and 1.45% for Medicare. a. By the end of week 52, how much did Westway deduct for Suzie's Social Security and Medicare for the year? (Round your answers to the nearest cent.) Deductions Social Security Medicare b. What state and federal unemployment taxes does Westway pay on Suzie's yearly salary? The state unemployment rate is 5.1% and the federal unemployment tax is 0.6% on the...
where should they be in balance sheet? Withholding Taxes Payable-Federal Withholding Taxes Payable-State Social Security and Medicare Taxes Payable FUTA Taxes Payable SUTA Taxes Payable $5,000 $1,300 the $3,826 $150 $1,350