BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Federal income tax is withheld from employee earnings
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only in those states electing to do so.
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in all states with over 10, 000, 000 population.
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only in states where a state income tax is levied.
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in all 50 states.
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Explanation:
Detailed explanation-1: -What Is the Difference Between Federal and State Income Taxes? Federal income taxes are collected by the federal government, while state income taxes are collected by the individual state(s) where a taxpayer lives and earns income.
Detailed explanation-2: -Employers must withhold federal income tax from employee wages and must forward the tax to the government. They also must pay federal and state unemployment tax and social security taxes. The federal unemployment insurance rate = 6% (imposed on the first USD 7, 000 of each employee’s wages).
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