Asked by Bethany Gordon on Jul 01, 2024
Verified
Which of the following taxes would be deducted in determining an employee's net pay?
A) FUTA taxes
B) SUTA taxes
C) FICA taxes
D) all are correct
FICA Taxes
Taxes mandated by the Federal Insurance Contributions Act, which fund Social Security and Medicare, collected from both employers and employees.
FUTA Taxes
Federal Unemployment Tax Act taxes, which are payroll taxes paid by employers to fund the government’s unemployment benefits.
SUTA Taxes
State Unemployment Tax Act taxes, which are state unemployment insurance contributions that employers must pay to provide unemployment benefits to workers who have been laid off.
- Gain insight into the influence that social security and Medicare tax rates exert on employees' net earnings and the payroll expenditures of employers.
Verified Answer
RS
Raman Sohal7 days ago
Final Answer :
C
Explanation :
FICA taxes (Social Security and Medicare taxes) are deducted from an employee's gross income to determine their net pay. FUTA and SUTA taxes are employer taxes and do not affect an employee's net pay.
Learning Objectives
- Gain insight into the influence that social security and Medicare tax rates exert on employees' net earnings and the payroll expenditures of employers.