The Purpose of the Wage Base Used for the Social

Multiple Choice

The purpose of the wage base used for the Social Security tax is _______ .

A) to determine when to start withholding the tax from an employee's pay
B) to determine the amount of Social Security tax to withhold from an employee's pay
C) to establish a maximum salary level for application of the tax to employee pay
D) to compute the total amount of Social Security tax that a firm must pay