Payroll Taxes Paid by Employees Include Which of the Following

question 24

Multiple Choice

Payroll taxes paid by employees include which of the following?

• A) Federal income tax, federal unemployment tax, and Medicare
• B) Social security, federal unemployment tax, and state unemployment tax
• C) Federal income tax withheld, state income tax withheld, and Medicare

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Definitions:

Book Income

The income reported by a corporation for financial reporting purposes, which may differ from taxable income.

Federal Income Tax

A tax levied by the U.S. government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Earnings and Profits

A measure of a corporation's ability to pay dividends to its shareholders, calculated for tax purposes.

FMV

Fair Market Value refers to the price at which property would sell on the open market between a willing buyer and a willing seller.