Business FinancesQuestion 285 of 1605
Which payroll tax is paid entirely by the EMPLOYER and never withheld from an employee's wages?
a.The employee's share of Social Security tax
b.Federal income tax withholding
c.Federal Unemployment Tax (FUTA)
d.California State Disability Insurance (SDI)
Explanation
FUTA is funded solely by the employer; nothing is withheld from employees for it. Income tax, the employee Social Security share, and California SDI are all withheld from the worker's pay.
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Related questions on this topic
- What tax form does an employer issue to each EMPLOYEE at the end of the year to report wages and withholding?
- A contractor is hiring its first employee. Which federal identification number must the business obtain from the IRS to report payroll taxes?
- An employee's gross wages for a pay period are $2,000. Using the combined employee FICA rate of 7.65% (Social Security 6.2% plus Medicare 1.45%), how much is withheld from the paycheck for FICA?
- A contractor classifies an independent subcontractor as an employee by mistake (or the reverse). The MOST significant financial risk of misclassifying a worker is:
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- How frequently a contractor must deposit withheld federal payroll taxes with the IRS is determined primarily by:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)