Income tax withholdings and Social Security withholdings are a type of payroll tax that is an expense to the employer.

Question

Quizplus · Accepted Answer

Income tax withholdings and Social Security withholdings are primarily obligations of the employee; the employer merely acts as a withholding agent, remitting the withheld amounts to the government. The employer does bear a direct expense for their portion of Social Security and Medicare taxes, but income tax withholdings are not an expense to the employer; they are deducted from the employee's gross pay.

Income Tax Withholdings and Social Security Withholdings Are a Type