Question

1. FICA is a(n)

A. voluntary deduction based on a percentage of net income.
B. involuntary deduction based on percentage of gross pay
C. voluntary deduction based on percentage of gross pay
D. involuntary deduction based on a percentage of net income.

2. An example of voluntary deduction is___.
A. federal tax withholding
B. state tax withholding
C. charitable contributions
D. worker's compensation

Answer 1

The believe the answer is B. Fixed expense must be less then discretionary spending. I hope this helps.

Answer 2

1. The correct answer is B

2. The correct answer is A.

Explanation:

Voluntary Deduction : The deductions which are optional

Involuntary deductions : The deductions which are mandatory.

FICA : The Federal Insurance Contributions Act (FICA) is a U.S. law that creates a payroll tax requiring a deduction from the paychecks of employees based on percentage of gross pay. So, it is mandatory for all to pay and comes under involuntary deductions.

Also, federal tax withholding which is not mandatory by the law to be paid, is an example for voluntary deduction.