Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Payroll and Payroll Taxes

Financial Accounting

9. Current Liabilities

Payroll and Payroll Taxes

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Multiple Choice

How are the employees' portions of FICA tax liabilities paid?

FICA taxes are only paid by the employer and not by employees.

The employer pays both the employer's and employees' portions without withholding from paychecks.

They are withheld from employees' paychecks by the employer and remitted to the government.

Employees pay their FICA taxes directly to the IRS at year-end.

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Verified step by step guidance

Understand the concept of FICA taxes: FICA (Federal Insurance Contributions Act) taxes are payroll taxes that fund Social Security and Medicare programs. Both employers and employees are responsible for paying these taxes.

Clarify the employee's portion of FICA taxes: Employees are required to pay their portion of FICA taxes, which is typically withheld from their paychecks by the employer.

Explain the employer's role: Employers are responsible for withholding the employee's portion of FICA taxes from their paychecks and remitting it to the government along with the employer's portion.

Address the incorrect statements: The claim that FICA taxes are only paid by the employer is incorrect. Both employees and employers contribute to FICA taxes. Additionally, employees do not pay their FICA taxes directly to the IRS at year-end; these taxes are withheld throughout the year.

Summarize the correct process: The correct process is that employers withhold the employees' portion of FICA taxes from their paychecks, combine it with the employer's portion, and remit the total amount to the government on a regular basis.