Which of the following is an example of a tax authorized under the federal insurance contributions act (fica)? excise tax social security tax tariffs gift tax

The correct answer is Social Security tax.

Social Security tax is an example of a tax authorized under the Federal Insurance Contributions Act (FICA).

The Federal Insurance Contributions Act or FICA is a United States law. What this law does is create a payroll tax that requires the deduction from the paychecks of employees. This Federal Act also deducts a contribution from employers to fund two programs from the government: the Social Security and Medicare programs. What happen with people that are self-employed?. For them, there is a similar law, the Self-Employed Contributions Act or SECA.

That is why a Social Security tax is an example of a tax authorized under the Federal Insurance Contributions Act (FICA).

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