I have looked everywhere in my book for this answer and cant find it, pls help?

Question

For which of the following taxes is there no ceiling on the amount of employee annual earnings subject to the tax?
FICA tax
federal income tax
federal unemployment compensation tax
state unemployment compensation tax

Answer 1

Federal income tax.

FICA is capped - and your employer has to match it.
Federal and state unemployment taxes are capped also, but you don't have to pay them, your employer does.

Answer 2

Federal Income tax.

Answer 3

FICA refers to BOTH Social Security and Medicare tax. There is a limit on Social Security but NOT Medicare. There is no limit on income subject to Federal income tax.

Given the options, I believe the answer your class is looking for is Federal Income Tax.

Answer 4

Federal Income tax is the correct answer. You need to a process of elimination. You should find something about the cap on all of the others.