The employer incurs a payroll tax expense equal to the amount withheld from the employees' wages for federal income taxes.

Question

Quizplus · Accepted Answer

The employer incurs a payroll tax expense for their portion of Social Security and Medicare taxes, and possibly state unemployment taxes, but not for the federal income taxes withheld from employees' wages. The federal income tax withheld is a liability to the government, not an expense for the employer.

The Employer Incurs a Payroll Tax Expense Equal to the Amount