Which of the following groups does NOT contribute to Social Security taxes?

Which of the following groups does NOT contribute to Social Security taxes?

• A. Employees
• B. Employers
• C. Self-employed individuals
• D. Non-profit organizations

Answer: (D)

Non-profit organizations may not contribute to Social Security taxes in the same manner as the other groups listed. While employees and employers contribute to Social Security through payroll taxes, self-employed individuals also pay into Social Security through self-employment taxes. Non-profit organizations often qualify for certain exemptions under the Federal Insurance Contributions Act (FICA) or may choose not to have their employees participate in Social Security if they meet specific criteria. This exemption allows them to operate under different financial conditions, focusing on their charitable missions rather than on the mandatory tax contributions required of for-profit entities. Understanding this distinction is crucial for recognizing how various organizational structures affect tax responsibilities related to Social Security.

Non-profit organizations may not contribute to Social Security taxes in the same manner as the other groups listed. While employees and employers contribute to Social Security through payroll taxes, self-employed individuals also pay into Social Security through self-employment taxes. Non-profit organizations often qualify for certain exemptions under the Federal Insurance Contributions Act (FICA) or may choose not to have their employees participate in Social Security if they meet specific criteria. This exemption allows them to operate under different financial conditions, focusing on their charitable missions rather than on the mandatory tax contributions required of for-profit entities. Understanding this distinction is crucial for recognizing how various organizational structures affect tax responsibilities related to Social Security.