Question

Which two taxes make up fica?

a) Social Security and city tax
b) Social Security and Medicare tax
c) Federal and state tax
d) Medicare and uniform tax

Answer 1

The two taxes that make up FICA are Social Security and Medicare tax. Therefore, the correct option is B.

Step-by-step explanation:

The two taxes that make up FICA (Federal Insurance Contributions Act) are Social Security and Medicare tax. Social Security tax is a payroll tax that provides funds for retirement and disability benefits, while Medicare tax funds healthcare for seniors and certain individuals with disabilities. Together, these taxes account for more than 80% of federal revenues.