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

Employer payroll tax expense does not include which of the following?

Employer's share of Social Security tax

Federal unemployment (FUTA) tax

Employer's share of Medicare tax

Federal income tax withheld from employees

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Verified step by step guidance

Understand the concept of employer payroll tax expense: Employer payroll tax expense refers to the taxes that employers are required to pay based on their employees' wages. These taxes are separate from the amounts withheld from employees' paychecks.

Identify the components of employer payroll tax expense: Common components include the employer's share of Social Security tax, the employer's share of Medicare tax, and federal unemployment tax (FUTA). These are taxes that the employer is responsible for paying directly.

Clarify the role of federal income tax withheld: Federal income tax withheld is not part of the employer's payroll tax expense. Instead, it is an amount deducted from employees' wages and remitted to the government on behalf of the employees. The employer acts as a withholding agent but does not bear the cost of this tax.

Compare the options provided in the question: Review each option to determine whether it is part of the employer's payroll tax expense. The employer's share of Social Security tax, Medicare tax, and FUTA tax are all employer-paid taxes, while federal income tax withheld is not an employer expense.

Conclude that federal income tax withheld from employees is not included in employer payroll tax expense, as it is a deduction from employees' wages rather than a tax paid by the employer.