Question

Which of the following type of tax is NOT withheld from earnings?

A. Social Security tax
A. , , , , , Social Security tax

B. Income tax
B. , , , Income tax, , , , , , ,

C. Sales tax
C. , , , Sales tax, , , , , , ,

D. Medicare tax

Answer 1

C. Sales tax

Explanation:

FICA taxes are payroll taxes which get deducted from your payroll as social security tax and medicare tax. Income tax is another tax which is withheld from you earnings as well.

Sales tax is not withheld from your earnings even if you collected the sales tax as a retailer. It is a liability until you submit all of the related tax to the government.