Payroll Taxes and Federal Income Tax Withholding

1. The Social Security tax rate is

• 1.45%

• 6.20%

• 7.65%

2. Employees send their payroll taxes directly to the federal government.

• true

• false

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

• Form W-4

• Form W-2

• Form 1040EZ

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

• true

• false

5. Who completes Form W-4?

• Employer

• Employee

• IRS