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  • 18-11-2020
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Under FICA only, cash tips of more than $100 in a month are defined as taxable wages.

a. True
b. False

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Martebi
Martebi Martebi
  • 19-11-2020

Answer:

Option b: False

Explanation:

FICA is simply known as Federal Insurance Contributions Act. It is the act under which this tax is also deducted from the paycheck.The FICA tax rates and taxable wage bases are exactly the same for employees and employers.

Government uses FICA tax to provide

an income check to people at retirement age,health care, another service and others. It it a body that has its own rules, regulations and default in any of them may lead to penalty.

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