Question 11: Which of the following statements regarding Social Security tax is false?

Answer:

A.

Contributions to cafeteria plans are not taxable for Social Security tax.

B.

Social Security tax is also referred to as OASDI tax because it was initially established to benefit retired employees, survivors of employees, and disabled employees.

C.

All earnings of an employee that exceed the taxable wage base in a single year are not subject to Social Security tax.

D.	Social Security tax was first levied on employees in 1937.