Employer Payroll Taxes

question 4

Multiple Choice

Employer payroll taxes:

• A) Are payable for up to a maximum $117,000 of employee earnings.
• B) Are paid by the employee.
• C) Are added expenses beyond that for the wages and salaries earned by employees.
• D) Represent the social security taxes withheld from employees.
• E) Represent the federal taxes withheld from employees.

---

Definitions:

Depreciation Adjustment

An accounting method that allocates the cost of tangible assets over their useful life, affecting taxable income.

AMT Purposes

Refers to the objectives of the Alternative Minimum Tax, which is to ensure that individuals and corporations that benefit from certain exclusions, deductions, or credits pay at least a minimum amount of tax.

Tax Return

The form or forms used to report income and file income taxes with tax authorities, such as the IRS.

Gains

The increase in value of an asset or investment, representing the difference between the selling price and the purchase price.