Olivia’s employer deducts an amount from her paycheck for the Medicare program. What type of withholding is being deducted from Olivia’s paycheck?

Question

A.
tax exemption
B.
local withholding
C.
state withholding
D.
Social Security withholding

Answer 1

The correct answer is D. Social Security withholding.

In the context of payroll deductions, amounts withheld for the Medicare program are typically considered part of the Social Security and Medicare taxes (FICA). So while it specifically relates to Medicare taxes, it falls under the broader category of Social Security withholding.