Which One of the Following Payroll Taxes Is Not Withheld

question 11

Multiple Choice

Which one of the following payroll taxes is not withheld from the employee's wages because it is not levied on the employee?

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

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Definitions:

Short-Term Credit

Loans or credit facilities intended to be repaid within a short period, typically less than one year, used for fulfilling immediate financial needs.

Daily Operations

The day-to-day activities necessary for a business to function smoothly, including production, sales, and administrative tasks.

Compensating Balance

A minimum account balance that a borrower is required to maintain with a lender as a condition for a loan, intended to compensate the bank for providing the loan or credit line.

Effective Interest Rate

The actual return on an investment or the actual cost of a loan, taking into account the compounding of interest over time, as opposed to the nominal interest rate.