Question

Which of the following statements regarding fica taxes is false? multiple choice

O employers must pay withheld fica taxes to the irs.
O the amount of fica deducted from the employee is credited to a liability account.
O fica taxes include medicare taxes and state income taxes.
O an employer must pay fica taxes equal to the amount withheld from the employee.
O fica taxes are deducted from the employee.

Answer 1

The false statement regarding FICA taxes is that they include Medicare taxes and state income taxes.

Step-by-step explanation:

The false statement regarding FICA taxes is: FICA taxes include Medicare taxes and state income taxes.

FICA taxes, which stand for Federal Insurance Contributions Act, consist of two components: Social Security tax and Medicare tax. These taxes are deducted from an employee's paycheck to fund Social Security and Medicare programs. They do not include state income taxes.

For example, an employee may see 6.2% deducted from their paycheck for Social Security and 1.45% for Medicare, while the employer must also contribute the same amount. However, economists argue that the employer's portion of the taxes may be passed on to the employee through lower wages.