7. Most employers are required to withhold federal unemployment taxes from employee earnings. a. True b. False 8. Medicare taxes are paid by both the employee and the employer. a. True b. False 9. A corporation is a separate entity for accounting purposes but not for legal purposes. a. True b. False 10. Double taxation is a disadvantage of a corporation because the corporation has to pay income taxes at twice the rate applied o partnerships a. True b. False