Question

What accounts equal salary expense?

A. Employee income tax payable, social security tax payable, Medicare tax payable, health insurance premiums payable, retirement benefits payable, cash.
B. Employee income tax payable, social security tax payable, Medicare tax payable.
C. Social security tax payable, Medicare tax payable, retirement benefits, payable, cash.
D. Medicare tax payable, health insurance premiums payable

Answer 1

Option B is the correct answer. Employee income tax payable, social security tax payable, and Medicare tax payable are all payroll taxes that are deducted from an employee's gross pay. These taxes are considered part of the employer's payroll expenses and are included in the company's salary expense account.