Asked by Yocabed Efrem on Jul 22, 2024
Verified
Payroll taxes are based on the employee's net pay.
Net Pay
Gross pay less payroll deductions; the amount the employer is obligated to pay the employee.
Payroll Taxes
Taxes that employers are required to withhold from employees' paychecks and/or pay on behalf of their employees, including Social Security and Medicare taxes.
- Understand the impact of payroll taxes on employee's net and gross pay.
Verified Answer
NG
Nintai godloveJul 28, 2024
Final Answer :
False
Explanation :
Payroll taxes are based on the employee's gross pay, not their net pay. Gross pay is the total amount of money earned before any deductions or taxes are taken out.
Learning Objectives
- Understand the impact of payroll taxes on employee's net and gross pay.