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Planning Beginner: Understanding Your Payroll Taxes

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1.
If you fail to have sufficient payroll taxes withheld from your paycheck, the IRS may impose _______.
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Interest and penalties. Even if an employer is negligent in withholding enough from your paycheck, you could be held liable.
2.
Federal and state unemployment taxes are paid by _______.
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Employers. Employees do not contribute to them.
3.
The federal tax rate you pay will vary depending on your age.
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False. It varies depending on your filing status.
4.
Only employees pay Social Security taxes on their earnings.
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False. Employers pay the same amount on behalf of their employees, according to how much the employees pay.
5.
Medicare taxes fund health coverage for people over age 65.
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True. Medicare is a government-run health program.