Payroll Taxes and Federal Income Tax Withholding (IRS M-1)

The Social Security tax rate is

• 1.45%

• 6.20%

• 7.65%

Employees send their payroll taxes directly to the federal government.

• True

• False

Employers use which form to compute the amount of federal income tax to withhold?

• Form W-4

• Form W-2

• Form 1040EZ

Gross pay is the amount of pay the employee takes home.

• True

• False

Who completes Form W-4?

• . Employer

• Employee

• IRS

Who completed Form W-4? Enter the full name.

• Olivia Sanchez

• Olivia R. Sanchez

How many allowances did the taxpayer claim?

• 1

• 2

• 3

• 4

Is the taxpayer single or married?

• Single

• Married

Does the taxpayer want additional amounts to be withheld?

• Yes

• No

Is the taxpayer exempt from withholding?

• Yes

• No