Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
The federal tax rate you pay will vary depending on your age.
Choose wisely. There is only one correct answer.
False. It varies depending on your filing status.
2.
Employers must report and deposit payroll taxes directly with the federal government themselves.
Choose wisely. There is only one correct answer.
False. They can have payroll companies do it for them.
3.
The purpose of the W-4 form that you fill out when starting a new job is to determine _______.
Choose wisely. There is only one correct answer.
How much should be withheld from your paycheck for federal income taxes. The W-4 helps you and your employer avoid overpaying or underpaying throughout the year.
4.
Only employees pay Social Security taxes on their earnings.
Choose wisely. There is only one correct answer.
False. Employers pay the same amount on behalf of their employees, according to how much the employees pay.
5.
Federal and state unemployment taxes are paid by _______.
Choose wisely. There is only one correct answer.
Employers. Employees do not contribute to them.