Which of the following is NOT considered taxable wages under FICA?

The choice indicating that total cash tips of $15 received by an employee is not considered taxable wages under FICA is actually not accurate, as tips are generally subject to FICA taxes. The correct response is that the first six months of sick pay is not considered taxable wages under FICA.

FICA taxes include Social Security and Medicare taxes, which are applied to most earned income. However, sick pay is treated differently depending on the source. If sick pay is paid by an employer and classified as a part of regular wages, it is typically subject to FICA. However, if it is coming from a third-party source, such as an insurance company, this amount may not be subject to FICA.

By understanding these distinctions, it becomes clear why the first six months of sick pay can sometimes be regarded differently in terms of taxability. This knowledge is essential for accurate reporting and compliance with FICA regulations.