Unit 35: Health Insurance and Taxation

Question 1

how are social security benefits financed? 2 things

Answer 1

1. they are financed through a payroll security tax
2. essentially they come out of employees paycheck and are matched by employer or contributed

Question 2

the taxes for social security come out of an employees what?

Answer 2

gross wages

Question 3

how frequently does the money for social security come out of an employees wages?

Answer 3

every paycheck

Question 4

What do companies use to pay employee social secuirty taxes?

Answer 4

they pay with dollars that have already been taxed

Question 5

how does social security work for self employed people?

Answer 5

they must pay the full amount out of their paycheck

Question 6

are employers able to take a tax deduction for contributions on behalf of their employees

Answer 6

yes

Question 7

are employers entitled to a deduction for their share of the social security tax

Question 8

Regarding the taxation of of social s ecurity benefits, the only time federal income taxes are imposed on some benefits is if what?

Answer 8

the taxpayer has a substantial amount of additional income.

Question 8

social security benefits are generally ______ in regard to income tax?

Answer 8

received free of income tax

Question 9

Benefits paid by individually owned accident, health, disability, or long-term care policies generally are received income tax free by the taxpayer provided what?

Answer 9

the benefits do not exceed actual expenses