Asked by
Tiara Locklear
on Dec 05, 2024Verified
When workers earn income,they and their employer pay equal portions of FICA (the Federal Insurance Contributions Act) .Which statement is TRUE?
A) The worker and the employer each bear half of the burden (incidence) of the tax.
B) The employer bears almost all of the burden of the tax.
C) The worker bears almost all of the burden of the tax.
D) It's impossible to determine who bears the burden of the tax.
FICA
The Federal Insurance Contributions Act tax, a United States federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.
Federal Insurance Contributions Act
A U.S. law that requires employees to contribute to Social Security and Medicare, with matching contributions from employers.
Burden Of The Tax
The impact of a tax on the economic welfare of individuals, showing who ultimately bears the cost of the tax.
- Acquire knowledge on the impact of taxes on the shared financial obligations of employers and employees.
Verified Answer
MG
Learning Objectives
- Acquire knowledge on the impact of taxes on the shared financial obligations of employers and employees.