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