Identify all correct statements concerning payrolls and related payroll costs:
A) Both employers and employees pay Social Security and Medicare taxes.
B) Workers' compensation premiums are withheld from employees' wages.
C) An employer's total payroll costs usually exceed total wages expense by about 7 1/2%.
D) Under current law, employers are required to pay Social Security taxes on employees' earnings, but are not required to pay for health insurance.

Question

Quizplus · Accepted Answer

D  Both employers and employees are responsible for paying Social Security and Medicare taxes. Employers are required to pay Social Security taxes on employees' earnings, but they are not mandated by law to provide health insurance. Workers' compensation premiums are typically paid by employers, not withheld from employees' wages. The percentage by which payroll costs exceed wages can vary and is not fixed at 7 1/2%.

Identify All Correct Statements Concerning Payrolls and Related Payroll Costs