#1
1. What does FICA stand for in the context of Social Security taxation?
Federal Income Contribution Act
Federal Insurance Contributions Act
Financial Independence and Compensation Act
Fiscal Investment and Credits Amendment
#2
7. What is the purpose of the Social Security Trust Fund?
To invest in the stock market
To hold surplus Social Security revenue for future payouts
To provide emergency funds for retirees
To fund Medicare benefits
#3
9. Which government agency administers the Social Security program in the United States?
Internal Revenue Service (IRS)
Department of Labor
Social Security Administration (SSA)
Federal Reserve
#4
15. What role does the OASDI tax play in Social Security funding?
Funds administrative costs of the Social Security program
Provides additional benefits for retirees
Funds disability insurance within Social Security
Covers survivor benefits
#5
20. What is the role of the Social Security Advisory Board?
Sets Social Security tax rates
Advises on Social Security policy and administration
Manages the Social Security Trust Fund investments
Determines eligibility for benefits
#6
2. In the United States, what is the maximum amount of earnings subject to the Social Security tax in a given year?
$100,000
$150,000
$200,000
$142,800
#7
3. How is Social Security income taxed at the federal level?
Not taxed at all
Taxed at a fixed rate of 10%
Taxed based on income brackets
Taxed only for high-income individuals
#8
6. In the context of Social Security, what is the Windfall Elimination Provision (WEP) designed to address?
Reducing benefits for high-income individuals
Adjusting benefits for workers with non-covered employment
Providing additional benefits for low-income retirees
Eliminating benefits for early retirees
#9
8. How are Social Security benefits calculated based on an individual's earnings record?
Fixed amount for everyone
Percentage of average lifetime earnings
Based on the number of dependents
Randomly assigned amounts
#10
11. What is the purpose of the Social Security COLA (Cost of Living Adjustment)?
To decrease benefits for retirees
To adjust benefits based on inflation
To increase taxes on Social Security income
To fund healthcare programs
#11
14. How are Social Security benefits affected if a person chooses to retire before reaching the Full Retirement Age (FRA)?
Benefits increase
Benefits decrease
Benefits remain unchanged
Benefits are not applicable
#12
4. Which of the following groups is generally exempt from paying Social Security taxes in the United States?
Self-employed individuals
Federal government employees
State government employees
Students with part-time jobs
#13
5. What is the Full Retirement Age (FRA) for Social Security benefits in the United States?
#14
10. What is the significance of the 35-year earnings history used in the calculation of Social Security benefits?
Determines eligibility for benefits
Calculates the average indexed monthly earnings
Establishes the retirement age
Decides the taxation rate
#15
12. How does the Social Security program address survivor benefits?
Survivor benefits are not offered
Only available for spouses
Providing benefits to eligible family members of deceased workers
Offering lump-sum payments to survivors
#16
13. What is the Windfall Elimination Provision (WEP) in Social Security, and who does it primarily affect?
Increases benefits for retirees with low income
Reduces benefits for workers with non-covered employment
Provides additional benefits for veterans
Eliminates benefits for high-income individuals
#17
17. How does the Social Security program address disability benefits?
No disability benefits are provided
Limited to a fixed period
Available for eligible individuals with permanent disabilities
Offered only to veterans