When calculating the employee's payroll, the clerk forgot about the wage base limits. What impact could this error cause on the employee's check?
A) FICA-OASDI could be overstated.
B) FUTA could be overstated.
C) SUTA could be overstated.
D) All of these could be correct.

Question

Quizplus · Accepted Answer

The wage base limit applies to FICA-OASDI (Social Security tax), meaning that once an employee's earnings exceed a certain amount, no more Social Security tax should be withheld. If the clerk forgot about this limit, the FICA-OASDI could be overstated.

When Calculating the Employee's Payroll, the Clerk Forgot About the Wage