Question

Which of the following statements explains the relationship between Social Security and Medicare taxes?

a. Both Social Security and Medicare are applied to all wages up to $106,800.
b. Both Social Security and Medicare are applied to all wages without limit.
c. Medicare is applied to all wages up to $106,800. Social Security is applied to all wages without limit.
d. Social Security is applied to all wages up to $106,800. Medicare is applied to all wages without limit.

Answer 1

D.

Step-by-step explanation:

social security is only paid up to a certain amount which is 106,800 as of this question. Regardless of pay, you have to apply medicare taxes

Answer 2

The correct answer is letter D. Social Security is applied to all wages up to $106,800. Medicare, on the other hand, is applied to all wages without limit. That is the relationship between Social Security and Medicare.