Question

Recall what Social Security tax money provides for.

A. Medical benefits for people ages 65 and over

B. FUTA

C. Unemployment

What is net pay?

A. The full amount of wages or salary an employer pays an employee


B. The amount of money an employee earns divided by the number of hours worked


C. The amount of money that gets paid to an employee after payroll withholding


D. The total amount of taxes an employee owes each year

Answer 1

1. Social security tax money is used to provide for MEDICAL BENEFITS FOR PEOPLE AGES 65 AND OVER.
For every money that is paid as security tax, 70% of it is used to take care of retirees and their families while the rest of the money is used in taking care of health bill of those people under Medicare.
2. Net pay is THE AMOUNT OF MONEY THAT GET PAID TO AN EMPLOYEE AFTER PAYROLL WITHHOLDING. The correct option is C.
The total amount of money that a worker is paid at the end of the month is called gross salary. When deductions such as tax and others are removed from the gross payment, the remainig amount is called NET PAY.