Final answer:
The calculation methods of statutory deductions can vary whether the payment is a deduction from an employee's wages or a tax paid by the employer based on the employee's wages.
Step-by-step explanation:
The calculation methods of statutory deductions can vary depending on whether the payment is a deduction from an employee's wages or a tax paid by the employer based on the employee's wages.
When it comes to deductions from an employee's wages, examples include Social Security, Medicare, income tax, and insurance premiums. These deductions are a percentage of the employee's gross annual income.
On the other hand, taxes paid by the employer based on the employee's wages can include funding the social security system and other insurance programs. These taxes can be fixed charges or proportionally linked to the employee's pay.