Question

The payroll journal would show payments to _________.

1) the local government of payroll taxes from employees' pay checks
2) the federal government of federal withholding and FICA taxes
3) creditors for prior purchases
4) employees of their net wages

Answer 1

The payroll journal would show payments to the local government and the federal government for payroll taxes, including federal withholding taxes and FICA taxes.

Step-by-step explanation:

The payroll journal would show payments to 1) the local government of payroll taxes from employees' paychecks and 2) the federal government of federal withholding and FICA taxes.

Payroll taxes are taxes that employers are required to pay when they pay salaries to their staff. Deductions from an employee's wages are taxes that employers are required to withhold from employees' wages, while taxes paid by an employer based on the employee's wages are taxes that are paid from the employer's own funds.

In both cases, the employer and the employee split the payroll taxes. An employee only sees deductions from their paycheck for Social Security and Medicare percentages, but in reality, the worker pays all of the payroll taxes.