Which tax is paid entirely by the employer and not deducted from employee earnings?

The Federal Unemployment Tax (FUTA) is the correct answer because this tax is solely the responsibility of the employer. Employers pay FUTA based on their payroll, and this tax is not taken from employees' wages. It is designed to fund unemployment compensation for workers who are laid off or lose their jobs involuntarily.

In contrast, income tax, state unemployment tax, and Social Security tax all involve contributions from employees, where these deductions are taken directly from their paychecks. Income tax varies based on individual earnings and is withheld from employee wages. Similarly, employees and employers both contribute to Social Security tax, supporting the system that provides benefits to retirees and disabled individuals. State unemployment tax, while primarily paid by employers, can also have employee contributions in some states, further differentiating it from the Federal Unemployment Tax.