Planning Beginner: Understanding Your Payroll Taxes

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1.
Payroll taxes include _______.
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All of the above. These are all taken out of an employee's payroll.
2.
Employers must report and deposit payroll taxes directly with the federal government themselves.
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False. They can have payroll companies do it for them.
3.
The federal tax rate you pay will vary depending on your age.
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False. It varies depending on your filing status.
4.
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.
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.