The federal Social Security Act A. Does not apply to self-employed persons. B. Excludes professionals such as accountants, lawyers, and doctors. C. Provides for a deduction for Social Security taxes paid by the employee that is available against his or her federal income tax. D. Provides that bonuses and commissions paid as compensation are included as wages in the calculation of employer-employee contributions.

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Derick Baldwin

14 February, 10:04

The federal Social Security Act A. Does not apply to self-employed persons. B. Excludes professionals such as accountants, lawyers, and doctors. C. Provides for a deduction for Social Security taxes paid by the employee that is available against his or her federal income tax. D. Provides that bonuses and commissions paid as compensation are included as wages in the calculation of employer-employee contributions.

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Kennedy Espinoza · Answer 1

D. Provides that bonuses and commissions paid as compensation are included as wages in the calculation of employer-employee contributions.

Explanation:

As with reference to Sec 312 (a) - it clearly states that all the amount rendered by the employer to the employee as in the nature of wages shall be included for computing the value of contributions.

Thus, as the bonuses and commissions are part of wages.

This clearly it creates the understanding that all the bonus and commissions received by the employee shall form part of wages for calculating the value of employer employee contributions towards the funds.