Question

Which of these is an example of a payroll tax?

a) road usage tax
b) social security tax
c) state sales tax
d) paycheck withholding

Answer 1

b) social security tax

Step-by-step explanation:

Payroll tax is a tax deducted from an employee's paycheck and remitted to the authorities. Payroll tax is a component of deduction that employers make on all salaried employees.

Social security is an example of a payroll tax. It is a mandatory tax imposed by the government. Employees receive their net salaries with the payroll taxes already deducted. In other words, in payroll taxes, the employees do not come into contact with the tax amount.