Which of the following taxes has a maximum amount an employee must pay in a year?
A)Federal income tax
B)FICA-Medicare tax
C)FICA-OASDI tax
D)State Income tax

Question

Quizplus · Accepted Answer

FICA-OASDI tax has a maximum amount an employee must pay in a year, referred to as the Social Security wage base. In 2021, the Social Security wage base is $142,800, meaning employees only pay FICA-OASDI tax on the first $142,800 of their earnings for the year. The other taxes listed do not have maximum amounts an employee must pay in a year.

Which of the Following Taxes Has a Maximum Amount an Employee