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 payroll tax expense incurred by the employer is separate from the federal income taxes withheld from employees' wages. Payroll taxes typically include Social Security and Medicare taxes under FICA, and these are different from the income taxes withheld from employees' paychecks.

The Employer Incurs a Payroll Tax Expense Equal to the Amount