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question 11

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Definitions:

FICA Withholding

The process of deducting Social Security and Medicare taxes from an employee's paycheck, as required by the Federal Insurance Contributions Act.

Payroll Tax Deposits

Amounts employers set aside and send to tax authorities to cover their obligations for employee payroll taxes.

FUTA Tax

A national levy charged to employers to finance state employment services and joblessness benefits.

Self-Employment Taxes

Taxes that self-employed individuals pay, covering Social Security and Medicare taxes, based on their net earnings.

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