Asked by Lainey Erdmann on Jun 03, 2024
Verified
Which of the following is required to be withheld from an employee's gross pay?
A) both federal and state unemployment compensation taxes
B) only federal unemployment compensation tax
C) only federal income tax
D) only state unemployment compensation tax
Federal Income Tax
The tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.
Unemployment Compensation Taxes
Taxes imposed on employers that fund unemployment insurance benefits for laid-off workers.
- Familiarize oneself with the assorted taxes and deductions that employers need to manage in payroll contexts.
Verified Answer
ZK
Zybrea KnightJun 05, 2024
Final Answer :
C
Explanation :
Federal income tax is required to be withheld from an employee's gross pay, while unemployment compensation taxes are employer-paid taxes, not withheld from employee wages.
Learning Objectives
- Familiarize oneself with the assorted taxes and deductions that employers need to manage in payroll contexts.
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