Fundamental Payroll Certification (FPC) Practice Exam

Question: 1 / 400

What is the Social Security tax rate for employees in 2016?

6.2%

In 2016, the Social Security tax rate for employees was set at 6.2%. This rate is part of the Federal Insurance Contributions Act (FICA), which mandates that both employees and employers contribute to Social Security and Medicare. While the Social Security tax specifically funds retirement, disability, and survivor benefits, the combined FICA tax rate includes both Social Security and Medicare taxes, which is why some may confuse the two rates.

Understanding these concepts is key, as the 6.2% rate for Social Security was consistent with the previous year’s rate (2015) and was designed to contribute to the Social Security trust fund. The other percentages provided in the options pertain to different contexts or were applicable in other years, but only 6.2% specifically reflects the Social Security tax rate for employees in 2016.

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7.65%

5.0%

4.8%

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