{"id":164785,"date":"2024-11-10T16:29:48","date_gmt":"2024-11-10T16:29:48","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=164785"},"modified":"2024-11-10T16:29:50","modified_gmt":"2024-11-10T16:29:50","slug":"which-of-the-following-is-are-employer-payroll-costs","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2024\/11\/10\/which-of-the-following-is-are-employer-payroll-costs\/","title":{"rendered":"Which of the following is (are) employer payroll cost(s)"},"content":{"rendered":"\n

Which of the following is (are) employer payroll cost(s)?
g. Federal and state unemployment tax
h. \u00bd of FICA taxes
i. Federal and state income taxes
j. a and b only
k. all of the above<\/p>\n\n\n\n

The Correct Answer and Explanation is :<\/strong><\/mark><\/p>\n\n\n\n

The correct answer is j. a and b only<\/strong>.<\/p>\n\n\n\n

Explanation:<\/h3>\n\n\n\n

Employer payroll costs refer to the expenses a business incurs related to paying its employees. These costs are in addition to the wages or salaries paid to employees and are mandatory contributions imposed by various governmental entities, including federal, state, and local governments. Let\u2019s break down each option:<\/p>\n\n\n\n

g. Federal and state unemployment tax:<\/strong>
This is an employer payroll cost. Employers are required to pay federal and state unemployment taxes (FUTA and SUTA). These taxes fund unemployment benefits for workers who lose their jobs. While employees do not contribute directly to these funds, employers are solely responsible for paying them.<\/p>\n\n\n\n

h. \u00bd of FICA taxes:<\/strong>
This refers to the Federal Insurance Contributions Act (FICA), which consists of Social Security and Medicare taxes. The total FICA tax rate is 15.3%, with 7.65% paid by the employee and the other 7.65% paid by the employer. The employer is responsible for matching the employee\u2019s contribution, so the employer\u2019s share of FICA taxes is considered a payroll cost.<\/p>\n\n\n\n

i. Federal and state income taxes:<\/strong>
Federal and state income taxes are withheld from employees’ wages, but these taxes are not<\/strong> an employer payroll cost. Instead, the employer acts as an intermediary by withholding these taxes on behalf of the employee and remitting them to the government. Employers are not responsible for paying federal or state income taxes from their own funds.<\/p>\n\n\n\n

Summary:<\/h3>\n\n\n\n
    \n
  • g<\/strong> (unemployment taxes) and h<\/strong> (\u00bd of FICA taxes) are employer payroll costs because they are directly paid by the employer.<\/li>\n\n\n\n
  • i<\/strong> (income taxes) is not<\/strong> an employer payroll cost because the employer only withholds the tax but does not pay it from their funds.<\/li>\n<\/ul>\n\n\n\n

    Thus, the correct choice is j. a and b only<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Which of the following is (are) employer payroll cost(s)?g. Federal and state unemployment taxh. \u00bd of FICA taxesi. Federal and state income taxesj. a and b onlyk. all of the above The Correct Answer and Explanation is : The correct answer is j. a and b only. Explanation: Employer payroll costs refer to the expenses […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-164785","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/164785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=164785"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/164785\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=164785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=164785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=164785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}