Multiple Choice
Which of the following equations calculates net pay for an employee?
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9. Current Liabilities
Payroll and Payroll Taxes
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Which of the following is NOT required to be deducted from an employee's paycheck under U.S. federal law?
A
Charitable contributions
B
Federal income tax
C
Medicare tax (FICA)
D
Social Security tax (FICA)
Verified step by step guidance1
Understand the context of the question: The problem is asking which item is NOT legally required to be deducted from an employee's paycheck under U.S. federal law. This involves identifying mandatory payroll deductions versus optional ones.
Review mandatory payroll deductions under U.S. federal law: Federal income tax, Medicare tax (FICA), and Social Security tax (FICA) are all required deductions as per federal regulations.
Clarify the nature of charitable contributions: Charitable contributions are voluntary deductions. Employees may choose to donate a portion of their paycheck to charitable organizations, but this is not mandated by federal law.
Compare the options provided: Analyze each option to determine whether it is a mandatory deduction or a voluntary one. Federal income tax, Medicare tax, and Social Security tax are mandatory, while charitable contributions are voluntary.
Conclude that the correct answer is the option that is voluntary and not required by federal law: Charitable contributions.
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