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Since half of the FICA tax is paid by firms,and the other half is paid by workers, the burden of the tax must?


fall equally on firms and workers.

ans:
a) true
b) false

b. false.

the burden of the tax, when it comes to actually reporting the wages subjected to the tax, and depositing the tax to the correct accounts with the correct agencies, falls to the employer

False. While workers' Social Security taxes are limited to the first $97,500 (2007) in income, no such limitation applies to the employer portion of SS taxes when 2 or more employers are involved. If an employee works for 2 or more employers and earns more than the cap they get a refund of the excess. The employers, however, do NOT receive a refund of the excess SS taxes paid.

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