Asked by
Tyler Adams
on Oct 13, 2024
Verified
Statement I: The payroll tax and the Social Security tax are not identical.
Statement II: The wage base for the Social Security tax is raised each year to keep pace with inflation.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Payroll Tax
Charges levied on both employers and employees, typically based on a proportion of the wages that businesses distribute to their workers.
Wage Base
The maximum amount of earnings that is subjected to certain taxes, such as Social Security taxes, within a given time period.
- Acquire knowledge on the purpose and workings of Social Security and payroll taxation.
Verified Answer
SD
Learning Objectives
- Acquire knowledge on the purpose and workings of Social Security and payroll taxation.