If a company is considered to have high employee turnover, what effect does the turnover have on the Payroll Tax expenses for the business?

Question

Quizplus · Accepted Answer

High employee turnover means that the company is constantly hiring and training new employees, which can increase the payroll expenses. Payroll taxes, such as Social Security and Medicare, are calculated as a percentage of employee wages, so higher wages due to turnover can result in increased payroll tax expenses.

If a Company Is Considered to Have High Employee Turnover