Final answer:
Examples of involuntary deductions that employers are required to collect for payroll liabilities are federal and state income taxes, employee insurance premiums, Social Security and Medicare contributions, and payments into unemployment and workers' compensation insurance funds.
Step-by-step explanation:
What are examples of involuntary deductions employers are required to collect for employee and employer payroll liabilities? Involuntary deductions are those that employers must legally withhold or pay out of an employee's wages, as well as additional taxes that the employer must pay. These include:
- Federal and state income taxes - Employers must withhold these taxes from an employee's pay and remit them to the government. These are a part of the advance payment of income tax.
- Employee insurance (mainly health) - Premiums for health insurance may be deducted from the employee's wages if they are part of an employer-sponsored plan.
- Social Security contributions - A 6.2% deduction from employee wages is required for Social Security, with the employer matching this amount.
- Medicare contributions - Employers must deduct 1.45% of an employee's wages for Medicare, with a matching employer contribution.
- Unemployment and workers' compensation insurance - Employers are required to contribute to these funds based on state and federal laws to provide benefits to workers who lose their jobs or are injured at work.
These deductions and payments support various government programs and ensure that employees have certain protections and benefits.