Employer Witholding Requirements from Employee Wages

The video tutorial explains the obligations of employers regarding withholding taxes from employees' paychecks. It covers income tax withholding, payroll taxes including FICA, Social Security, and Medicare, as well as self-employment tax. The tutorial also discusses unemployment insurance and workers compensation, highlighting the employer's role in managing these withholdings and ensuring compliance with state and federal laws.

What form must an employee fill out to indicate their level of exemptions for income tax withholding?

• 1040

• 1099

• W-4

• W-2

What percentage of an employee's compensation is typically withheld for payroll taxes?

• 5% to 6%

• 7.5% to 8%

• 10% to 12%

• 15% to 16%

Who is responsible for paying the entire amount of self-employment tax?

• The employee

• The state government

• The employer

• The federal government

What is the purpose of unemployment insurance?

• To provide health benefits

• To cover workplace injuries

• To compensate employees who lose their job through no fault of their own

• To offer retirement savings

What benefit does workers' compensation provide to employees?

• Retirement benefits

• A percentage of salary during temporary disability

• Health insurance

• Paid vacation