Unit 5 - Running Your Business

Who pays FICA taxes?

• employees

• employers

• employees and employers

What does FICA stand for?

• Federal Insurance Contributions Act

• Federal Income Contributions Act

• Federal Investment Contributions Act

What is the primary purpose of FICA taxes?

• To fund educational programs

• To fund Social Security and Medicare programs

• To fund national defense

How are FICA tax rates determined?

• By state governments

• By the federal government

• By individual employers

Who pays FUTA taxes

• employees

• employers

• both employees and employers

• what is FUTA

Employee compensations include

• salary

• wages

• benefits

• all of these

Which is NOT an advantage of hiring employees?

• it adds an expense to the business

• share the workload

• more ideas

What is an insurance premium?

• will cover losses caused by workplace injuries

• payments to fund unemployment

• the amount paid before the insurance company chips in

• the amount of money the person or business pays for insurance coverage

What is an insurance deductible?

• will cover losses caused by workplace injuries

• payments to fund unemployment

• the amount paid before the insurance company chips in

• the amount of money the person or business pays for insurance coverage

What does FUTA stand for?

• Federal Unemployment Tax Act

• Federal Uniform Tax Act

• Federal Universal Tax Agreement