For which of the following taxes is there a ceiling on the amount of employee annual earnings subject to the tax?
A) Federal unemployment taxes
B) State unemployment taxes
C) FICA-OASDI
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

All of these taxes have a ceiling on the amount of employee annual earnings subject to the tax. Federal and State unemployment taxes have a wage base limit beyond which earnings are not taxed. Similarly, FICA-OASDI (Social Security) also has a wage base limit that is adjusted annually for inflation.

For Which of the Following Taxes Is There a Ceiling