The employees' share of FICA taxes and employees' federal and state withholding are expenses to the employer.

The statement is not entirely accurate. While the employer is responsible for matching the employee's share of FICA taxes, the employee's federal and state withholding taxes are not considered expenses to the employer.

1. FICA Taxes: Employers must match the employee's contribution to FICA (Federal Insurance Contributions Act), which consists of Social Security and Medicare taxes. Therefore, the employer incurs an expense equal to the total amount of FICA taxes (employee's share plus employer's share).

2. Withholding Taxes: Federal and state withholding taxes are amounts that the employer withholds from the employee's paycheck to cover their income tax obligations. Although these funds are withheld by the employer, they do not constitute a cost to the employer because they are not an expense; rather, they are liabilities, since the employer must remit these amounts to the government on behalf of the employee.

In summary, while employer contributions to FICA taxes are indeed expenses, the amount withheld for federal and state taxes are liabilities, not expenses to the employer.