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Which of the following is correct?

a. Employees have to pay Medicare taxes, but do not have to pay Social Security taxes.
b. Employers have to pay Medicare taxes, but do not have to pay Social Security taxes.
c. Employees have to pay Social Security taxes, but do not have to pay Medicare taxes.
d. Employers have to pay Social Security taxes, but do not have to pay Medicare taxes.

User Kingcope
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1 Answer

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Final answer:

Employees have to pay Social Security taxes, but do not have to pay Medicare taxes.

Step-by-step explanation:

In both cases, the employer and the employee split the payroll taxes. An employee only sees 6.2% deducted from their paycheck for Social Security, and 1.45% from Medicare.

However, as economists are quick to point out, the employer's half of the taxes are probably passed along to the employees in the form of lower wages, so in reality, the worker pays all of the payroll taxes.

Therefore, option c is correct: Employees have to pay Social Security taxes, but do not have to pay Medicare taxes.

User Sam Rueby
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