Which level of government collects U.S. Social Security and Canadian Pension taxes?

• A. City council
• B. State government
• C. County government
• D. U.S. and Canadian governments

Answer: (D)

The federal governments of the United States and Canada handle these payroll taxes. Social Security in the U.S. is funded by a federal payroll tax collected under FICA, administered at the national level. The Canada Pension Plan in Canada is similarly funded through contributions collected by the federal government (via the Canada Revenue Agency). Subnational levels like cities, counties, or states/provinces don’t collect these nationwide social insurance taxes; they deal with local taxes instead.