Maywood, Inc. withholds $720 from Steve's paycheck for federal income tax. This amount is part of the company's payroll tax expense.

Question

Quizplus · Accepted Answer

The $720 withheld from Steve's paycheck for federal income tax is part of Steve's personal income tax obligation, not the company's payroll tax expense. Payroll taxes for the company would include taxes they pay directly, such as employer portions of Social Security and Medicare taxes.