Identify all correct statements concerning payrolls andrelated payroll costs.a. Both employers and employees pay Social Security andMedicare taxes.b. Workers’ compensation premiums are withheld fromemployees’ wages.c. An employer’s total payroll costs usually exceed totalwages expense by about 71⁄2 percent.d. Under current law, employers are required to pay SocialSecurity taxes on employees’ earnings, but they are notrequired to pay for health insurance.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Identify all correct statements concerning payrolls and
related payroll costs.
a. Both employers and employees pay Social Security and
Medicare taxes.
b. Workers’ compensation premiums are withheld from
employees’ wages.
c. An employer’s total payroll costs usually exceed total
wages expense by about 71⁄2 percent.
d. Under current law, employers are required to pay Social
Security taxes on employees’ earnings, but they are not
required to pay for health insurance.

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