BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Expenses
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Withholdings
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Deductions
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Reductions
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Detailed explanation-1: -The federal government determines the percentages employees will pay for payroll taxes. The payroll taxes taken from your paycheck include Social Security and Medicare taxes, also called FICA (Federal Insurance Contributions Act) taxes.
Detailed explanation-2: -For employees, withholding is the amount of federal income tax withheld from your paycheck. The amount of income tax your employer withholds from your regular pay depends on two things: The amount you earn. The information you give your employer on Form W–4.
Detailed explanation-3: -Estimated tax is the method used to pay taxes on income that is not subject to withholding. This includes income from self-employment, interest, and dividends. You may also have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.
Detailed explanation-4: -State withholding is money that is withheld and sent to the State of California to pay California income taxes. It pays for state programs such as education, health and welfare, public safety, and the court justice system. California’s elected representatives also meet every year to decide how this money will be spent.