A federal tax paid for old-age, survivors, and disability insurance is ___________.

Prepare for the BPA Payroll Accounting Test with interactive quizzes. Equip yourself with essential payroll accounting skills through our comprehensive multiple choice and flashcard study resources. Ace your exam!

The correct choice highlights the Social Security Tax, which is a federal tax specifically designed to fund the Old-Age, Survivors, and Disability Insurance (OASDI) program. This program provides benefits to retirees, survivors of deceased workers, and individuals with disabilities. The Social Security Tax is deducted from employees' wages and matched by employers, ensuring a two-fold contribution to the fund that supports these essential services.

Social Security Tax is a crucial element of the overall payroll tax system, affecting both current workers and those who may rely on these benefits in the future. Understanding this tax's purpose is important for grasping how federal programs are financed and the benefits they can provide to citizens in need throughout their lifetimes.

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