Question

Identify the statement below that is not true regarding social security tax.

O In any given year, there is no limit on the amount of wages subject to social security tax.
O The social security tax provides benefits for retirement as well as worker disability.
O Social security is sometimes referred to as FICA.
O Both the employee and the employer pay an equal amount of social security tax on the employee's wages.

Answer 1

The statement that is not true regarding social security tax is that both the employee and the employer pay an equal amount of social security tax on the employee's wages. In reality, the employee pays 6.2% and the employer pays an additional 6.2%.

Step-by-step explanation:

The statement that is not true regarding social security tax is: Both the employee and the employer pay an equal amount of social security tax on the employee's wages. In reality, the employee pays 6.2% and the employer pays an additional 6.2%, making the total 12.4% of the employee's wages subject to social security tax. This tax is proportional for wages up to a certain limit, but above that level, it becomes a regressive tax.