PHR · Question #47
Which of the following requires employers to pay social security tax for employees and to withhold the tax amount from employee paychecks?
The correct answer is C. Federal Insurance Contributions Act (FICA). FICA mandates that both employers and employees contribute to Social Security and Medicare through payroll taxes, with employers withholding the employee share from paychecks.
Question
Which of the following requires employers to pay social security tax for employees and to withhold the tax amount from employee paychecks?
Options
- AFair Labor Standards Act (FLSA)
- BOccupational Safety and Health Administration (OSHA)
- CFederal Insurance Contributions Act (FICA)
- DEmployee Retirement Income Security Act (ERISA)
How the community answered
(22 responses)- A5% (1)
- B14% (3)
- C77% (17)
- D5% (1)
Why each option
FICA mandates that both employers and employees contribute to Social Security and Medicare through payroll taxes, with employers withholding the employee share from paychecks.
The FLSA governs minimum wage, overtime, and child labor standards, not payroll tax withholding obligations.
OSHA is a regulatory agency focused on workplace safety and health standards, not payroll taxes.
The Federal Insurance Contributions Act (FICA) requires employers to withhold a set percentage of each employee's wages for Social Security and Medicare taxes and to match that contribution from their own funds. This dual obligation - withholding and matching - is the defining feature of FICA. Failure to remit these taxes triggers significant IRS penalties.
ERISA sets standards for private-sector pension and benefit plans, not Social Security or Medicare tax contributions.
Concept tested: FICA employer payroll tax withholding obligation
Source: https://www.irs.gov/taxtopics/tc751
Topics
Community Discussion
No community discussion yet for this question.