Multiple Choice
Which of the following payroll-related costs are incurred by employees?
6
views
9. Current Liabilities
Payroll and Payroll Taxes
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is NOT a required deduction from your paycheck under U.S. federal law?
A
Medicare tax (FICA)
B
Charitable contributions
C
Social Security tax (FICA)
D
Federal income tax
Verified step by step guidance1
Understand the concept of mandatory payroll deductions under U.S. federal law. These deductions are required by law and include taxes such as Medicare tax (FICA), Social Security tax (FICA), and federal income tax.
Recognize that charitable contributions are voluntary deductions. They are not mandated by federal law and are typically made at the discretion of the employee.
Review the list of options provided in the problem: Medicare tax (FICA), Social Security tax (FICA), Federal income tax, and Charitable contributions.
Identify which of these deductions is not required under U.S. federal law by comparing them to the mandatory deductions mentioned earlier.
Conclude that charitable contributions are the correct answer because they are not a required deduction under U.S. federal law.
Related Videos
Related Practice
Payroll and Payroll Taxes practice set
Problem sets built by lead tutorsExpert video explanations