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

Which of the following payroll-related costs are incurred by employees?

Employer's portion of Social Security tax

Employer-paid health insurance premiums

Federal income tax withholding

State unemployment tax (SUTA)

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Verified step by step guidance

Understand the distinction between payroll-related costs incurred by employees versus those incurred by employers. Employees are responsible for costs directly deducted from their wages, while employers cover costs that are not deducted from employee wages but are required by law or company policy.

Review the list of payroll-related costs provided in the problem. Identify which costs are typically deducted from an employee's paycheck. These deductions are the ones incurred by employees.

Federal income tax withholding is a mandatory deduction from an employee's paycheck. This is the amount withheld by the employer and sent to the government on behalf of the employee. It is incurred by the employee because it reduces their net pay.

Employer's portion of Social Security tax and state unemployment tax (SUTA) are costs incurred by the employer, not the employee. These are not deducted from the employee's paycheck but are paid directly by the employer to the government.

Employer-paid health insurance premiums are also costs incurred by the employer. These premiums are paid by the employer to provide health insurance coverage for employees and are not deducted from the employee's wages.