Which compensation should NOT be considered when determining unemployment taxes for an employee?

When determining unemployment taxes for an employee, the compensation that should not be considered is the employer matching fund for FICA. Unemployment taxes are calculated based on the wages paid to employees, which typically include regular salary, bonuses, and commissions. However, FICA (Federal Insurance Contributions Act) contributions are not included in these calculations.

FICA contributions consist of Social Security and Medicare taxes, which are withheld from employees' wages and matched by the employer. Since the employer's contribution is not considered an actual wage received by the employee, it does not factor into the unemployment taxable wage base. Thus, it is excluded from the computation of unemployment taxes. In contrast, regular salaries, bonuses, and commissions are direct forms of compensation that employees receive, and these are included in the unemployment tax calculation.