For which of the following taxes is there a ceiling on the amount of annual earnings subject to the tax?
A) Only the FICA tax and the federal unemployment
B) The FICA tax and the state and federal unemployment taxes
C) Only the state and federal unemployment taxes
D) Only the FICA tax

Question

Quizplus · Accepted Answer

The FICA tax (Social Security portion) and both state and federal unemployment taxes have a wage base limit, meaning there is a maximum amount of earnings subject to these taxes.

For Which of the Following Taxes Is There a Ceiling