The employee's contribution to Social Security is: (Check all that apply.)

BlackTom题目解析

Question

The employee's contribution to Social Security is: (Check all that apply.)

BlackTom题目解析

BlackTom AI · Accepted Answer

When considering how the employee contributes to Social Security, several aspects come into play and deserve careful unpacking.
Option 1: 'matched by an employer contribution.' This is true because the standard Social Security tax under FICA involves both the employee and the employer contributing an equal share up to the wage base. The employee’s withholding is paired by a corresponding employer contribution, effectively matching the employee's portion.
Option 2: 'held back by the employer.' This statement reflects the practical payroll process: the employee's Social Security tax is withheld from the employee’s wages by the employer. The employer facilitates the deduction from gross pay and remits it to the government on behalf of the employee.
Option 3: 'paid by the employee on an annual basis.' While the total employee contribution over a year sums to an annual amount, the payments occur with each paycheck throughout the year. Describing the contribution as being paid on an annual basis is misleading because the withholding happens in payroll cycles, not as a single annual payment. This makes the option technically inaccurate for how the mechanism operates in practice.
Option 4: 'calculated using the employee's annual wage base.' This is correct. The Social Security portion is determined using the wage base for the year, capping the amount of earnings subject to tax. Once earnings exceed the wage base, the employee’s Social Security tax stops accruing for that year, which is a key feature of the calculation.
In summary, the statements that accurately describe the employee’s Social Security contribution are that it is matched by the employer, it is held back by the employer, and it is calculated using the employee’s annual wage base. The statement about paying on an annual basis does not reflect the actual payroll withholding timing.

The employee's contribution to Social Security is: (Check all that apply.) BlackTom题目解析

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