Payroll Taxes and Take-Home Pay

What is the primary purpose of payroll taxes?

• To fund public education

• To fund social insurance programs like Social Security and Medicare

• To pay for national defense

• To support infrastructure development

If an employee earns a gross salary of $50,000 per year and the payroll tax rate is 7.65%, what is the total amount of payroll taxes paid by the employee annually?

• $3,825

• $3,250

• $4,500

• $2,500

How do payroll taxes affect an employee's take-home pay?

• They increase take-home pay

• They have no effect on take-home pay

• They decrease take-home pay

• They double take-home pay

Which of the following is NOT typically considered a payroll tax?

• Social Security tax

• Medicare tax

• Federal income tax

• Sales tax

If an employee's gross pay is $1,000 and the payroll tax rate is 7.65%, what is the employee's net pay after payroll taxes?

• $923.50

• $765.00

• $1,076.50

• $850.00

Which of the following statements is true regarding payroll taxes?

• Employers do not contribute to payroll taxes

• Payroll taxes are only paid by employees

• Both employees and employers contribute to payroll taxes

• Payroll taxes are optional

What is the current Social Security tax rate for employees in the United States as of 2023?

• 6.2%

• 7.65%

• 1.45%

• 10%

If an employee's annual salary is $60,000 and the Social Security tax rate is 6.2%, how much does the employee pay in Social Security taxes annually?

• $3,720

• $4,650

• $3,100

• $2,500

What is the Medicare tax rate for employees in the United States as of 2023?

• 1.45%

• 2.9%

• 6.2%

• 7.65%

If an employee earns $80,000 annually, what is the total amount of Medicare taxes paid by the employee?

• $1,160

• $1,450

• $2,320

• $1,200