Question

Which of the following are employer-only payroll obligations?

1. Medicare tax

2. FUTA

3. SUTA

4. Social Security tax

Answer 1

Correct answers:

Option (2) or FUTA (Federal Unemployment Taxes) is correct answer becuase this FUTA (Federal Unemployment Taxes) is tax paid by only employers and not the employees.This tax is aplicable to those people who have lost their job recently.The employers have to pay 6% as FUTA (Federal Unemployment Taxes).

Option(3) or SUTA (State Unemployment Taxes) is correct answer because this SUTA (State Unemployment Taxes) is also a tax paid by only employers and not the employees.This tax is also applicable to those people who have lost their jobs recently. This tax rate is not fixed because every state has different tax rate.

Incorrect Answers:

Option(1) or Medicare tax is incorrect answer because this tax is paid by both employer and employees.This tax is shared equally between employers and employees. The total Medicare tax is 2.90% of which employers pay 1.45% and employees pay 1.45%.

Option (4) or Social Security tax is incorrect answer because Social Security tax is paid by both employer and employees and shared equally between employers and employees.The total Social Security tax is 12.4 % of which employers pay 6.2% and employees pay 6.2%.

So correct answer is option Option (2) or FUTA (Federal Unemployment Taxes) and Option(3) or SUTA (State Unemployment Taxes)