Payroll Taxes & Federal Income Tax Withholding

The Social Security tax rate is...

• 1.45%

• 6.20%

• 7.65%

• 6.5%

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