Asked by
Marleen Lopez
on Oct 25, 2024
Verified
By law,FICA (the Federal Insurance Contributions Act) ,a payroll tax,is collected equally from employers and employees.In reality:
A) the law works since the employers and the employees each bear half of the burden of the tax.
B) the employees bear almost all of the burden of the tax.
C) the employers bear almost all of the burden of the tax.
D) it's impossible to determine who bears the burden of the tax.
FICA
FICA stands for the Federal Insurance Contributions Act and is a United States federal payroll tax that funds Social Security and Medicare programs.
Payroll Tax
A tax on the earnings an employer pays to an employee.
Burden Of The Tax
The burden of the tax refers to the impact of a tax on the economic welfare of stakeholders, indicating who ultimately bears the cost of the tax.
- Comprehend how taxation influences the distribution of financial responsibility between employers and employees.
Verified Answer
AW
Learning Objectives
- Comprehend how taxation influences the distribution of financial responsibility between employers and employees.