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1. With regards to wage income: a. employers pay all of the social security income directly, and employees pay the Medicare tax through withholding. b.

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1. With regards to wage income: a. employers pay all of the social security income directly, and employees pay the Medicare tax through withholding. b. employers pay half of the payroll taxes (7.65%) directly, while employees pay the other half through withholding. c. payroll taxes are only withheld if the employee specifically requests additional withholding d. employees rarely see any reporting of their payroll taxes because they are sent directly from the employer's account to the IRS. a. 2. Self-employed taxpayers are obligated to pay the SECA tax, which: is capped at the same inflation adjusted amount as FICA taxes on wage income. b. varies by state. must be reported on Schedule C. d. is only imposed on income for which the self-employed taxpayer receives a form 1099. C

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