Question 1: The sole purpose of Social Security taxes is to provide retirement benefits to employees.

Answer: T/F

Question 2: The Social Security wage base for 2021 is $142,800.

Answer: T/F

Question 3: Taxable earnings for Social Security tax are always the same as taxable earnings for federal income tax withholding.

Answer: T/F

Question 4: Collectively, Social Security tax and Medicare tax are referred to as FICA taxes.

Answer: T/F

Question 5: The income threshold for Medicare tax indicates the income level above which no Medicare taxes are levied

Answer: T/F

Question 6: Employees are required to contribute toward the purchase of disability insurance in all 50 states

Answer: T/F

Question 7: The contribution limit for a SIMPLE IRA is lower than that for a 401(k) or 403(b).

Answer: T/F

Question 8: ERISA is a set of regulations that dictate the manner in which a cafeteria plan may be administered.

Answer: T/F

Question 9: Flexible spending accounts contain a use it or lose it feature that, although relaxed in recent years, limits the time over which the account's funds may be utilized.

Answer: T/F

Question 10: Certain withholding amounts are disregarded when determining net pay.

Answer: T/F