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Planning Beginner: Understanding Your Payroll Taxes

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1.
The federal tax rate you pay will vary depending on your age.
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False. It varies depending on your filing status.
2.
Everyone will have to pay Social Security tax on all their income, no matter how much it is.
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False. The amount of earnings one must pay tax on is capped, though it usually changes every year.
3.
Employers who withhold and pay more than $50,000 in payroll taxes must report and deposit those taxes _______.
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Semi-weekly. As a rule, the more you withhold, the more frequently you must report and deposit it.
4.
Medicare taxes fund health coverage for people over age 65.
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True. Medicare is a government-run health program.
5.
Federal and state unemployment taxes are paid by _______.
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Employers. Employees do not contribute to them.