Question

Which of the following acts levies a tax on employers and employees that is credited to the federal old-age and survivors' trust fund and the federal disability insurance trust fund?a. federal insurance contributions actb. federal income tax actc. federal unemployment tax actd. fair labor standards act

Answer 1

Answer:

Option "A" is the correct answer for the following situation.

Federal Insurance Contributions Act.

Explanation:

It is a Compensation Program that is for salary or job payment from the United States directed at both workers and employers to support federal programs for Medicare and social security that provide coverage to veterans, people with disabilities and families of deceased citizens.

Income under this Act consist of old-age pension income, survivors and disabilities taxation, also known as payroll taxes, and health benefits tax, also known as Medicare taxes. For these taxes, different rates apply.