QUESTION 4 The social security system in the United States is financed by a payr
ID: 1195959 • Letter: Q
Question
QUESTION 4
The social security system in the United States is financed by
a payroll tax levied solely on the employee.
a payroll tax levied equally on the employer and employee.
an income tax collected by the Internal Revenue Service.
a payroll tax levied solely on the employer.
a tax on individual retirement accounts.
a payroll tax levied solely on the employee.
a payroll tax levied equally on the employer and employee.
an income tax collected by the Internal Revenue Service.
a payroll tax levied solely on the employer.
a tax on individual retirement accounts.
Explanation / Answer
Social Security is financed through a dedicated payroll tax. Employers and employees each pay 6.2 percent of wages up to the taxable maximum of $118,500 (in 2015), while the self-employed pay 12.4 percent.
as per this option (b) is right
a payroll tax levied equally on the employer and employee.
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