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True and false questions. Need help on Answers Scoring 1 . The employer must pay to the IRS the amount owed for Social Security and

True and false questions. Need help on

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Answers Scoring 1 . The employer must pay to the IRS the amount owed for Social Security and Medicare by the business plus the amount withheld for the employee. Individuals who own and run their own businesses are considered employees. Small businesses often have an outside company handle payroll because of the complexity of payroll rules. Self-employment income is the net income of a business or trade run by a partnership. Under the Federal Unemployment Tax Act, a payroll tax is levied on employers and employees for the purpose of financing the administration cost of the state unemployment compensation program. The self-employment tax rate is equal to the rate for Social Security and Medicare. IIIIIII The Social Security, Medicare, FUTA, and SUTA tax payable accounts are credited when the taxes are actually paid. Both employee and employer payroll taxes are paid to the IRS. The more a business owes in Federal Income Tax withholding and Social Security and Medicare taxes, the more time it has to pay it. 0. The maximum earnings amounts to which the unemployment tax percentage is applied is $7,000 for every state. 1. Deposits of Social Security and Medicare taxes may be made on Form 8109

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