Chapter 7. Who Pays the FICA?

EIA Who Pays the FICA?

1. Question

   Use Link 1 to answer the following questions. True or False: The total amount of FICA taxes to be paid for each employee are generally 12.4% for Social Security and 2.9% for Medicare.

   A.

   False.

   B.

   True.

2. Question

   True or False: FICA taxes do not have to be reported or paid if wages are above an annual threshold.

   A.

   True.

   B.

   False.

3. Question

   True or False: In 2012-2013, the annual wage threshold for FICA taxes was $1,700.

   A.

   True.

   B.

   False

4. Question

   Some examples of fringe benefits that are excluded from taxable income include:

   A.

   Allowance for qualified parking costs of up to $245 per month

   B.

   Allowance for vehicle transportation or mass transit costs of up to $245 per month

   C.

   Lodging or meals on the premises if it is at the convenience of the employer

   D.

   All of the above

5. Question

   True or False: FUTA stands for Federal Unemployment Tax Act.

   A.

   True.

   B.

   False.

6. Question

   Visit Link 2 and answer the following question. Do you think Social Security should be privatized? Why or why not? Discuss.

   Your response will be graded by your instructor.

   Visit Link 2 and answer the following question. Do you think Social Security should be privatized? Why or why not? Discuss.

• Point per question: 1pts for short answer 1pts for multiple choice
• number of attempts on quiz as a whole: 1 or unlimited?
• set which score reports to Gradebook: first, most recent, highest, or average
• Randomize answers (for multiple choice questions only)? Yes or no