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1.
Federal and state unemployment taxes are paid by _______.
Employers. Employees do not contribute to them.
2.
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.
3.
Everyone will have to pay Social Security tax on all their income, no matter how much it is.
False. The amount of earnings one must pay tax on is capped, though it usually changes every year.
4.
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.
5.
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.