Which of the following taxes would be deducted in determining an employee's net pay?

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BlackTom AI · Accepted Answer

Question restatement: Which of the following taxes would be deducted in determining an employee's net pay?

Option 1: all are correct. This is not accurate because not all listed taxes are deducted from an employee's net pay. Some are employer-only taxes, so saying all are correct would misstate the payroll deductions.

Option 2: FICA taxes. This option is correct because FICA taxes (Social Security and Medicare) are deductions taken from an employee's earnings to compute net pay. They are employee-side payroll taxes.

Option 3: SUTA taxes. This is incorrect in the context of employee payroll deductions. SUTA (State Unemployment Tax Act) taxes are typically employer-paid to fund unemployment programs, not withheld from employee wages.

Option 4: FUTA taxes. This is also incorrect for the same reason as SUTA: FUTA (Federal Unemployment Tax Act) taxes are generally paid by the employer and not deducted from an employee's net pay.

Summary: The only deduction among the options that reduces an employee's take-home pay is the FICA tax. The unemployment taxes (SUTA and FUTA) are employer taxes and do not appear as deductions from an employee’s net pay. The option stating that all are correct is incorrect because it would imply employer-only taxes are deducted from the employee, which is not the case.

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Which of the following taxes would be deducted in determining an employee's net pay?

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Similar Questions

Which of the following are included in the employer's payroll taxes?

True or False? In Sage 50, you need to enter the information in the Taxes tab of the employee records using the employee's completed TD1 forms.

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Which of the following taxes would be deducted in determining an employee's net pay?

View Explanation

Log in for full answers

Similar Questions

Which of the following are included in the employer's payroll taxes?

True or False? In Sage 50, you need to enter the information in the Taxes tab of the employee records using the employee's completed TD1 forms.

Which of the following options is NOT a payroll tax charged in Canada?

What can you do to ensure that your business calculates, tracks, and remits the correct amount of payroll taxes for your employees, in compliance with Canadian tax laws?

Which is the correct process to set up payroll taxes?

Which of the following taxes is only paid by the employer?

Using the General Journal for XY Consumer Products (GJ01), the total Employment Insurance Payable for Account 2050 is:

The employee's contribution to Social Security is: (Check all that apply.) BlackTom题目解析

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