Question

Do you think employers should have to match employees FICA taxes? Do you think employers should be responsible for paying unemployment taxes on its employees? In order to receive your full points, your discussion should be thorough and you must reply to another student's discussion. Make sure that you state the classmate's name to whom you are replying. Also, this should be a thorough discussion. Typically one sentence is not a discussion.

Answer 1

FICA generally requires employers to withhold Social Security and Medicare taxes from their employees earnings (wages, salaries, commissions, bonuses, etc.) and then match the amounts withheld. This means that employers must remit to the government two times the amount withheld from their employees for Social Security and Medicare taxes.

For example, if an employer has only one employee earning $20000 per year, the employer must withhold $2,295 of FICA tax from the employee. (6.2% for the Social Security tax of $1240, plus 1.45% for the Medicare tax of $290.) The employer must then match the $1530 and remit the total of $3060( i.e,2 TIMES) to the federal government

Unemployment compensation is a monetary benefit out-of-work individuals receive to help pay living expenses until they return to work. Workers dismissed for disqualifying reasons such as misconduct are not eligible for unemployment benefits. Employers are solely responsible for paying these taxes. No money is deducted from a worker's wages for the tax but only certain workers qualify to receive unemployment compensationn unemployed worker may receive benefits if he became unemployed through no fault of his own. In other words, if the employer lays off the worker or goes out of business, the worker qualifies for benefits.