If FICA takes the same percentage rate of everyone’s pay, how can it take a higher proportion of the income of lower earners?
a. Lower earners have to pay the full amount, whereas higher earners’ employers pay half.
b. The income from which FICA is taken is capped, so higher earners are not taxed on earnings above that amount.
c. Lower earners are required to pay FICA during the year, and again as part of income taxes at the end of the year.
d. FICA is only taken from hourly wages, so salaried workers, who usually earn higher incomes, do not have to pay it.
b. The income from which FICA is taken is capped, so higher earners are not taxed on earnings above that amount.
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