134k views
0 votes
When is an employee not subject to FICA tax?

A. Over age of 70
B. Over age of 65
C. Over age of 59 1/2
D. None of the above

1 Answer

6 votes

Final answer:

FICA taxes are mandatory for earning employees regardless of age. Retirement benefits can be claimed upon reaching older age, but FICA taxes are not contingent on the age of the employee, hence the correct answer is D. None of the above.

Step-by-step explanation:

An employee is not subject to Federal Insurance Contributions Act (FICA) tax merely due to reaching a certain age. FICA taxes, which fund Social Security and Medicare, are generally mandatory regardless of age for all employees who earn a wage.

The Social Security program itself provides benefits to workers upon reaching retirement age, which was initially set at 65 but has been gradually increased to 67 for those born after 1959. Therefore, the correct answer to when an employee is not subject to FICA tax is D. None of the above.

User Erik Aybar
by
7.8k points

No related questions found