Question

With regard to employers, generally, salary payments to employees are deductible but fringe benefit payments are not.

Answer 1

Payroll taxes consist of deductions from an employee's wages and taxes paid by the employer based on the employee's wages.

Step-by-step explanation:

Employers are required to pay payroll taxes when they pay salaries to their staff. Payroll taxes can be divided into two categories: deductions from an employee's wages and taxes paid by the employer based on the employee's wages.

Deductions from an employee's wages are taxes that employers are required to withhold from employees' wages. These deductions cover advance payments of income tax, social security contributions, and various insurances, such as unemployment and disability.

Taxes paid by an employer based on the employee's wages are taxes that are paid from the employer's own funds. These taxes usually cover the employer's funding of the social security system and other insurance programs.