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1.
If you fail to have sufficient payroll taxes withheld from your paycheck, the IRS may impose _______.
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.
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 _______.
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 _______.
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.
True. Medicare is a government-run health program.