Question

In: Accounting

Which of the following statements about payroll taxes is true? A : Federal and state unemployment...

Which of the following statements about payroll taxes is true?

  • A :

    Federal and state unemployment taxes are paid by employers to the taxing authority and are recorded as salaries and wages expense.

  • B :

    Federal and state unemployment taxes are paid by employers to the taxing authority and are recorded as payroll tax expenses.

  • C :

    Federal and state unemployment taxes are paid by employers to employees at the time they leave the company and are recorded as salaries and wages expense.

  • D :

    Federal and state unemployment taxes are paid by employers to employees at the time they leave the company and are recorded as payroll tax expenses.

Solutions

Expert Solution

Solution:

Only Employer pays Federal and State Unemployment taxes. They are recorded as payroll tax expenses.

Hence, the answer is Option B. Federal and state unemployment taxes are paid by employers to the taxing authority and are recorded as payroll tax expenses.

ekkarill92 answered 2 years ago
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