Question

[1] The Social Security Act provides for the imposition of taxes and the disbursement of benefits.
Which of the following is a true statement regarding these taxes and disbursements in the current
year?
A. Only those who have contributed to Social Security are eligible for benefits.
B. As between an employer and its employee, the tax rates are the same.
C. A deduction for federal income tax purposes is allowed the employee for Social Security
taxes paid.
D. Social Security benefits are fully includible in gross income for federal income tax purposes
unless they are disability benefits.

[2] The federal Social Security Act
A. Does not apply to self-employed persons.
B. Excludes professionals such as accountants, lawyers, and doctors.
C. Provides for a deduction for Social Security taxes paid by the employee that is available
against his or her federal income tax.
D. Provides that bonuses and commissions paid as compensation are included as wages in the
calculation of employer-employee contributions.

[3] The federal Social Security Act
A. Applies to self-employed persons.
B. Excludes professionals such as accountants, lawyers, and doctors.
C. Provides for a deduction for Social Security taxes paid by the employee against his or her
federal income tax.
D. Applies to professionals at their option

Answer 1

[1] The Social Security Act provides for the imposition of taxes and the disbursement of benefits.
Which of the following is a true statement regarding these taxes and disbursements in the current
year?

Answer:

A. Only those who have contributed to Social Security are eligible for benefits.

[2] The federal Social Security Act

Answer:

D. Provides that bonuses and commissions paid as compensation are included as wages in the calculation of employer-employee contributions.

[3] The federal Social Security Act

Answer:

A. Applies to self-employed persons.