Planning Beginner: Understanding Your Payroll Taxes

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1.
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.
2.
Income tax filing statuses include _______.
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All of the above. There are several statuses that determine your rate.
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.
Payroll taxes include _______.
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All of the above. These are all taken out of an employee's payroll.
5.
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.