Which of the Following Is Not an Employer Payroll Cost

question 87

Multiple Choice

Which of the following is not an employer payroll cost?

• A)FICA taxes.
• B)Federal and state unemployment taxes.
• C)Federal and state income taxes.
• D)Employer contributions to a retirement plan.

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Definitions:

FICA-Medicare

A federal tax deducted from employees' paychecks and matched by employers to fund the Medicare program.

SUTA Payable

A liability account showing the amounts due to the state for state unemployment taxes, payable by employers based on established rates.

Journal Entry

The method by which transactions are recorded in the company's ledger, noting debits and credits.

Debit

In accounting, a debit is an entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.