Payroll tax (also known as FICA) is _____ Federal and State income tax.

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BlackTom AI · Accepted Answer

The question asks about how payroll tax (FICA) relates to Federal and State income tax. 
Option A: 'a part of' — This would imply FICA is embedded within or absorbed as a subset of income tax, which is inaccurate because FICA is a separate payroll tax dedicated to Social Security and Medicare, not a component of income tax.
Option B: 'more than' — This would suggest FICA exceeds federal and state income tax in some sense, which is not a standard comparative claim; payroll taxes and income taxes are different categories with separate rates and purposes, so this is misleading.
Option C: 'deducted from' — This would mean FICA is subtracted from income taxes or from wages in the sense of being taken out as a deduction, but the phrasing here would imply a misrepresentation of how payroll taxes relate to tax withholding, since FICA itself is a tax withheld from gross wages, not something deducted from income tax.
Option D: 'in addition to' — This correctly portrays the relationship: FICA payroll taxes are separate from Federal and State income taxes and are paid in addition to income taxes; they are additional withholdings that fund Social Security and Medicare, independent of income tax.

FIN 205 B Module 5 Quiz Taxes

Payroll tax (also known as FICA) is _____ Federal and State income tax.

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