Which of the following is true about the employee’s FICA tax liability?

The correct statement about the employee's FICA tax liability is that the employee continues to have liability even after withholding. This is because FICA taxes, which include Social Security and Medicare taxes, are considered a liability for the employee as part of their overall tax obligations.

When an employer withholds FICA taxes from an employee’s paycheck, it is true that the amount deducted must be remitted to the IRS; however, this does not eliminate the employee's responsibility for the total FICA tax owed on their earnings. The amount withheld is merely a prepayment of the tax liability that is calculated based on the employee's total annual income. If too much tax is withheld, the employee might be able to claim a refund when they file their tax return, but the underlying liability for the FICA tax remains throughout the year and must be settled with the IRS.

This understanding is crucial for employees to recognize that they still have a financial responsibility to ensure that the correct amount of taxes are being paid throughout the year, regardless of the withholding practices of their employer.