Final answer:
FICA taxes and unemployment taxes are types of payroll taxes deducted from an employee's salary. The employee pays 6.2% for Social Security and 1.45% for Medicare, while the employer also contributes. Unemployment taxes are solely paid by the employer.
Step-by-step explanation:
FICA taxes and unemployment taxes are types of payroll taxes that are deducted from an employee's salary or wages. FICA taxes, which include Social Security and Medicare taxes, are paid by both the employer and the employee. The employee pays 6.2% of their salary for Social Security and 1.45% for Medicare, while the employer also contributes an equal amount. Unemployment taxes, on the other hand, are solely paid by the employer.
In the given example, the employee's gross income is $420,000. From that, $30,030 is withheld for FICA taxes, which includes the employee's portion of Social Security and Medicare taxes. Additionally, $2,920 is paid for unemployment taxes by the employer. The income taxes withheld from the employee's salary are not relevant to the calculation of these payroll taxes.