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Planning Beginner: Understanding Your Payroll Taxes

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1.
Income tax filing statuses include _______.
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All of the above. There are several statuses that determine your rate.
2.
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.
3.
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.
4.
The federal tax rate you pay will vary depending on your age.
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False. It varies depending on your filing status.
5.
Federal and state unemployment taxes are paid by _______.
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Employers. Employees do not contribute to them.