Asked by Emmanuel Munashe Matimba on Jun 19, 2024
Verified
Which payroll tax is imposed on both the employee and the employer?
A) federal income tax
B) state unemployment tax
C) FICA tax
D) federal unemployment tax
FICA Tax
Federal Insurance Contributions Act tax, a U.S. tax that funds Social Security and Medicare, deducted from employees' paychecks and matched by employers.
Payroll Tax
Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.
Federal Income Tax
A tax levied by the national government on an individual's or corporation's annual income.
- Understand payroll tax obligations imposed on both employee and employer.
Verified Answer
KC
Kelsey CorderJun 22, 2024
Final Answer :
C
Explanation :
FICA tax is imposed on both the employee and the employer. It is a combination of Social Security tax (6.2% for both employee and employer) and Medicare tax (1.45% for both employee and employer).
Learning Objectives
- Understand payroll tax obligations imposed on both employee and employer.