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The average employee of Girard Corporation earns gross pay of $75,000 per year.The following table shows the relative size of various payroll amounts by expressing each as a percentage of total wages and salaries expense (gross pay):
In addition,Girard pays $425 per month per employee for group health insurance.
-Which of the following payroll taxes do not stop once an employee reaches a certain level of income:
A)Medicare taxes.
B)Social security taxes.
C)Unemployment taxes.
D)Medicare,Social security,and unemployment taxes.

Question

[The following information applies to the questions displayed below.]
The average employee of Girard Corporation earns gross pay of $75,000 per year.The following table shows the relative size of various payroll amounts by expressing each as a percentage of total wages and salaries expense (gross pay):
  In addition,Girard pays $425 per month per employee for group health insurance.
-Which of the following payroll taxes do not stop once an employee reaches a certain level of income:
A)Medicare taxes. 
B)Social security taxes. 
C)Unemployment taxes. 
D)Medicare,Social security,and unemployment taxes.

Quizplus · Accepted Answer

Medicare taxes do not stop regardless of how high an employee's income gets. Social Security taxes have a wage base limit beyond which they are not collected, and unemployment taxes typically have a state-specific wage base limit as well.

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