Question

Look at a portion of a sample paycheck:

Answer 1

The correct answer is A) payroll.

The description at a portion of a sample paycheck is an example of a Payroll Tax.

When an employer pays a check to an employee, the Payroll Tax is the kind of tax that the Company withholds from an employee’s salary. The employer pays the tax on behalf of the employee. To calculate this Payroll Tax, the employer bases it on the salary that it is paying to the employee. When the federal authority collects the tax, it deducts concepts such as Medicare, income taxes and Social Security.