Choice "D" is correct. An employer who fails to withhold FICA taxes from an employee's wages is liable for the employee's portion. Once the employer pays both shares to the government, he/she has the right to be reimbursed by the employee for the employee's share.
Choice "c" is incorrect. Where the employer fails to withhold, the employer becomes primarily liable for the employee's share.
Choice "a" is incorrect. Employers are allowed a deduction for the employer's portion.
Choice "b" is incorrect. The penalties are based on the failure to pay and not on the failure to collect the tax.
