BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following payroll deductions is NOT a payroll tax?
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income tax
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Social Security and Medicare
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health insurance
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unemployment tax
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Explanation:
Detailed explanation-1: -The answer is (d), Federal and state income taxes. Income taxes are only paid by the employee, although it is you-the employer-who deducts them from your employee’s wages. Confusing, huh?
Detailed explanation-2: -Mandatory deductions: Federal and state income tax, FICA taxes, and wage garnishments. Post-tax deductions: Garnishments, Roth IRA retirement plans and charitable donations. Voluntary deductions: Life insurance, job-related expenses and retirement plans.
Detailed explanation-3: -There are 19 ways in which tax deductions can be availed, ranging from public provident funds to life insurance and loans.
There is 1 question to complete.