BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a federal tax paid for old-age, survivors, and disability insurance.
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social security tax
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medicare tax
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estate tax
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income tax
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Explanation:
Detailed explanation-1: -The current FICA tax rate applicable to both employees and employers is 6.2 percent for OASDI (5.015 percent for OASI and 1.185 percent for DI ) and 1.45 percent for HI .
Detailed explanation-2: -Social Security benefits are typically computed using “average indexed monthly earnings.” This average summarizes up to 35 years of a worker’s indexed earnings. We apply a formula to this average to compute the primary insurance amount (PIA). The PIA is the basis for the benefits that are paid to an individual.
Detailed explanation-3: -needs-based program funded by the U.S. Treasury general fund to provide payments to people with limited income and resources who are age 65 or older, blind, or disabled.
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