Figure 8-5 -What Type of Diagram Is Shown in the Accompanying Figure

question 6

Essay

Figure 8-5

-What type of diagram is shown in the accompanying figure?

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Definitions:

Wage Base Limits

The maximum amount of income that is subject to social security or other payroll taxes within a tax year.

Payroll Tax Expense

The employer’s expense associated with the employment taxes (Social Security, Medicare, and unemployment taxes) on the wages paid to employees.

Federal Unemployment Taxes

Taxes paid by employers based on employee wages/salaries to fund unemployment compensation to workers who have lost their jobs.

Medical Insurance

Health care insurance for which premiums may be paid through a deduction from an employee’s paycheck.