Employer payroll taxes:
A) Are payable for up to a maximum $117,000 of employee earnings.
B) Are paid by the employee.
C) Are added expenses beyond that for the wages and salaries earned by employees.
D) Represent the social security taxes withheld from employees.
E) Represent the federal taxes withheld from employees.

Question

Quizplus · Accepted Answer

Employer payroll taxes are taxes paid by the employer based on the amount of wages and salaries earned by employees, in addition to the actual wages and salaries paid. These taxes include social security taxes, Medicare taxes, federal and state unemployment taxes, and any other state-specific taxes. They are not paid by the employee and do not represent the taxes withheld from employees' paychecks. The maximum amount of earnings subject to social security taxes changes annually and for 2021 it is set at $142,800.

Employer Payroll Taxes