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 after which the tax does not apply to the employee's 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