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Which of the following statements explains the relationship between Social Security and Medicare taxes?
a. Both Social Security and Medicare are applied to all wages up to $106,800.
b. Both Social Security and Medicare are applied to all wages without limit.
c. Medicare is applied to all wages up to $106,800. Social Security is applied to all wages without limit.
d. Social Security is applied to all wages up to $106,800. Medicare is applied to all wages without limit.

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taskmasters
The correct answer is letter D. Social Security is applied to all wages up to $106,800. Medicare, on the other hand, is applied to all wages without limit. That is the relationship between Social Security and Medicare.

Answer:

D.

Explanation:

social security is only paid up to a certain amount which is 106,800 as of this question. Regardless of pay, you have to apply medicare taxes

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