Navigating US Payroll Taxes

What are the three categories of payroll taxes?

• Income, Sales, and Property

• Employees, Employers, and Both

• Federal, State, and Local

• FICA, FUTA, and SUTA

What percentage of FICA taxes is allocated to Social Security?

• 6%

• 1.45%

• 6.2%

• 7.65%

Who pays Federal Unemployment Tax (FUTA)?

• Employees only

• Independent contractors

• Employers only

• Both employees and employers

What is the maximum amount of wages subject to FUTA tax?

• No limit

• $12,000

• $10,000

• $7,000

What is the primary use of funds collected from SUTA taxes?

• Education

• Social Security

• Unemployment insurance

• Healthcare benefits

How are federal payroll taxes paid?

• Direct deposit

• Electronically through EFTPS

• In cash

• Via check

What form is used to report payroll taxes quarterly?

• W-4

• Form 941

• W-2

• Form 940

How are independent contractors taxed differently from employees?

• They are exempt from taxes

• They pay both employee and employer shares of FICA

• They only pay state taxes

• They pay less in taxes

What was the purpose of the CARES Act payroll tax deferral?

• To eliminate the need for Social Security taxes

• To provide a near-term increase in paychecks

• To reduce the tax rate permanently

• To increase long-term savings

What constitutes total compensation for payroll tax purposes?

• Salary only

• Wages, salaries, commissions, bonuses, and overtime pay

• Health benefits

• Retirement contributions