BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The portion of an employee’s wages that is not included in their paycheck because it goes directly to federal, state and local taxes
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A government-run insurance program that provides healthcare assistance to elderly and disabled Americans
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A range of income amounts that are taxed at a particular rate
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The tax bracket that your highest dollar of income falls into, and therefore the highest tax rate you pay
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Detailed explanation-1: -Withholding is the portion of an employee’s wages that is not included in their paycheck but is instead remitted directly to the federal, state, or local tax authorities. Withholding reduces the amount of tax employees must pay when they submit their annual tax returns.
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: -Most employers pay both a federal and a state unemployment tax. Only the employer pays FUTA tax; it is not deducted from the employee’s wages. State unemployment insurance taxes are based on a percentage of the taxable wages an employer pays on each employee’s earnings.
Detailed explanation-4: -You might have claimed to be exempt from withholding on your Form W-4. You must meet certain requirements to be exempt from withholding and have no federal income tax withheld from your paychecks. You should check with your HR department to make sure you have the correct amount withheld.