Which of the following is true about Social Security and Medicare taxes as they pertain to earnings limits? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Employers contribute equally on all Social Security and Medicare taxes. Once an employee's year-to-date earnings exceed the wage base, no additional Social Security tax is withheld. Social Security tax applies to all earnings, regardless of year-to-date amounts. Highly compensated employees are subject to additional Medicare tax withholding.
Which of the following is true about Social Security and Medicare taxes as they pertain to earnings limits? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Employers contribute equally on all Social Security and Medicare taxes. Once an employee's year-to-date earnings exceed the wage base, no additional Social Security tax is withheld. Social Security tax applies to all earnings, regardless of year-to-date amounts. Highly compensated employees are subject to additional Medicare tax withholding.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Which of the following is true about Social Security and Medicare taxes as they pertain to earnings limits? (You may select more than
one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box
with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as
incorrect.)
Employers contribute equally on all Social Security and Medicare taxes.
Once an employee's year-to-date earnings exceed the wage base, no additional Social Security tax is withheld.
Social Security tax applies to all earnings, regardless of year-to-date amounts.
Highly compensated employees are subject to additional Medicare tax withholding.
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