- The employer has to match the amount of
- FICA taxes withheld from the employee’s wages, and this amount is recorded by debiting Payroll Tax Expense.
Each state is responsible for paying its own state unemployment tax. This tax is paid by employers only at the rate of 5.4 percent on the first $7,000 earned by each employee.
The Federal Unemployment Tax Act is to provide financial support for the maintenance of government-run employment offices. This tax is paid only by employers only. The rate is 0.8 percent of the first $7,000 of earnings.
Workers’ compensation laws protect employees and their dependents against losses due to death or injury incurred on the job.