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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.
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.
3.
The purpose of the W-4 form that you fill out when starting a new job is to determine _______.
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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.
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.
5.
Medicare taxes fund health coverage for people over age 65.
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True. Medicare is a government-run health program.