Final answer:
Employers are required by law to pay Medicare and Social Security contributions, as well as federal unemployment tax. Health and life insurance premiums are not mandated by law but can be offered as part of an employee benefits package. Overall, these payroll taxes contribute to the funding of social safety nets and federal programs. The correct options are 1,4,5.
Step-by-step explanation:
By law, an employer is required to pay several types of payroll taxes. These taxes typically include contributions to Medicare and Social Security, as well as federal unemployment tax. Specifically, the employer must match the employee’s contribution to Social Security at 6.2% of wages and Medicare at 1.45% of wages.
However, employers are not typically required by law to pay for employee health insurance premiums or life insurance premiums; such benefits are often provided at the discretion of the employer and can be part of a competitive compensation package to attract and retain employees.
In the United States, both the employer and employee share the burden of payroll taxes. While the employee sees the deductions from their paycheck, economists argue that the employer's share can result in lower wages as a means of offsetting the cost.
If an individual is an independent contractor in the gig economy, they must cover both the employee and employer portions of the payroll taxes.
Unemployment taxes are another employer responsibility. The Federal Unemployment Tax Act (FUTA) requires employers to pay unemployment taxes to help fund state unemployment agencies. The correct options are 1,4,5.