Employers receive a deduction for compensation paid to and employment taxes paid on behalf of employees.

Question

Quizplus · Accepted Answer

This is true according to the Internal Revenue Service (IRS). Employers can deduct wages, salaries, bonuses, commissions, and other forms of compensation they pay to employees, as well as employment taxes they pay on behalf of employees, such as Social Security and Medicare taxes. This deduction helps employers reduce their taxable income and can lower their overall tax liability.

Employers Receive a Deduction for Compensation Paid to and Employment