Response to the following questions:
1. Identify whether the employer or employee or both incurs each of the following: (a) FICA taxes, (b) FUTA taxes, (c) SUTA taxes, and (d) withheld income taxes.
2. Estimated liabilities involve an obligation to pay which of these?
(a) An uncertain but reasonably estimated amount owed on a known obligation or
(b) A known amount to a specific entity on an uncertain due date.
3. Under what circumstances is a future payment reported in the notes to the financial statements as a contingent liability?