Question

Which of the following must employers by law withhold from their employees' pay?

a. contributions toward retirement funds
b. Health insurance contributions
c. unemployment taxes
d. Federal income taxes

Answer 1

Social Security tax

The employee and employer split this percentage (6.2% each). You must withhold 6.2% from employee wages for the employee's portion. As an employer, you must also contribute 6.2% for Social Security tax. Employers must follow a Social Security wage base.