For which of the following taxes is there no ceiling on the amount of employee annual earnings subject to the tax?
A) only Social Security tax
B) only Medicare tax
C) only unemployment compensation tax
D) none of the above

Question

Quizplus · Accepted Answer

Medicare tax has no ceiling on the amount of employee annual earnings subject to the tax. Social Security tax, on the other hand, has a ceiling which is commonly referred to as the Social Security wage base. Unemployment compensation tax also has a ceiling for employee earnings subject to the tax. Therefore, D is not the answer either.

For Which of the Following Taxes Is There No Ceiling