Asked by
rodolfo jr. Olvera
on Nov 17, 2024Verified
Since half of the FICA tax is paid by firms and the other half is paid by workers, the burden of the tax must fall equally on firms and workers.
FICA Tax
A U.S. federal payroll tax that funds Social Security and Medicare, contributions are made by both employees and employers.
Burden Falls
An economic term referring to how the costs or economic burdens of a policy, tax, or regulation are distributed among various stakeholders.
- Familiarize oneself with the role of payroll taxes and their consequences for employees and companies.
Verified Answer
JN
Learning Objectives
- Familiarize oneself with the role of payroll taxes and their consequences for employees and companies.