Federal law requires that the employer withhold _________ from the employee's pay.
A) federal income tax,social security tax,Medicare tax,and FUTA
B) federal income tax,social security tax,and Medicare tax
C) federal income tax,social security tax,Medicare tax,and state and local taxes
D) Federal and state income tax,social security tax,Medicare tax,and FUTA

Question

Quizplus · Accepted Answer

According to the Federal Insurance Contributions Act (FICA), employers are required to withhold federal income tax, social security tax, and Medicare tax from their employees' pay. FUTA (Federal Unemployment Tax Act) is not withheld from the employee's pay, but is paid entirely by the employer. State and local taxes may also be withheld if mandated by the state. However, the question specifically asks for federal law requirements, so only federal taxes need to be considered. Therefore, the correct answer is B.

Federal Law Requires That the Employer Withhold _________ from the Employee's