Which One of the Following Payroll Taxes Does Not Result

question 122

Multiple Choice

Which one of the following payroll taxes does not result in a payroll tax expense for the employer?

• A) FICA tax
• B) Federal income tax
• C) Federal unemployment tax
• D) State unemployment tax

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Definitions:

Principal Reduction

The act of paying down the outstanding balance of a loan, not including interest, to reduce the principal amount owed.

Interest Payment

The amount paid by a borrower to a lender for the use of borrowed money, usually expressed as a percentage of the principal.

Note Payable

A liability representing a written promise to pay a specified amount of money at a future date, often including interest payments.

Maturity

The date on which a financial instrument, such as a bond or loan, becomes due and the principal is to be repaid.