Question

The highest paid executives of a firm are excluded from coverage under the Federal Insurance Contributions Act?

True or False

3 years ago - 1 answers

Best Answer

Chosen by Asker

Kinda true.

See, the majority of highly compensated executives, are NOT compensated via wages, but rather bonuses or stock shares, which are NOT subject to FICA taxes.

Additionally, FICA maxes out, for 2010, at $106,800. Every dollar of salary you earn after that amount, is NOT subject to FICA taxes.

3 years ago