In the payroll tax calculation example, which component is included in the total payroll tax liability along with federal income tax withheld?

• A. Federal income tax withheld only
• B. Combined social security and medicare taxes withheld
• C. Federal unemployment tax only
• D. Both federal income tax withheld and the social security/medicare taxes withheld for both employee and employer

Answer: (D)

Total payroll tax liability consists of all taxes the employer must remit from payroll. In the example, that means combining the federal income tax withheld from employees with the Social Security and Medicare taxes, including both the employee’s share withheld from wages and the employer’s matching share. This full combination reflects what the payroll processor must remit to the government for the period. The federal unemployment tax is a separate liability, so it isn’t part of the FICA calculation used for this total.