Multiple Choice
4. What is the self-employment tax (SECA) rate, and how does it compare to the combined employer and employee FICA tax rates for Social Security and Medicare?
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9. Current Liabilities
Payroll and Payroll Taxes
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is NOT an employer payroll tax?
A
Federal Unemployment Tax (FUTA)
B
Federal Income Tax Withholding
C
Social Security Tax (employer portion)
D
Medicare Tax (employer portion)
Verified step by step guidance1
Understand the concept of employer payroll taxes: These are taxes that employers are required to pay based on their employees' wages. Examples include FUTA, Social Security Tax (employer portion), and Medicare Tax (employer portion).
Recognize the distinction between employer payroll taxes and employee payroll deductions: Employer payroll taxes are paid by the employer, while employee payroll deductions are withheld from the employee's paycheck (e.g., Federal Income Tax Withholding).
Analyze each option provided in the question: Federal Unemployment Tax (FUTA), Social Security Tax (employer portion), Medicare Tax (employer portion), and Federal Income Tax Withholding.
Identify that Federal Income Tax Withholding is not an employer payroll tax: It is a tax withheld from employees' wages and remitted to the government by the employer, but it is not paid by the employer directly.
Conclude that the correct answer is Federal Income Tax Withholding, as it does not fall under the category of employer payroll taxes.
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