Which of the following is not deducted from employee pay?

The federal unemployment tax is not deducted from employee pay because it is an employer-paid tax. This tax is specifically used to fund unemployment benefits for workers who lose their jobs, and it is assessed on the employer's payroll rather than taken from the wages of employees.

On the other hand, state taxes, Social Security tax, and Medicare tax are all payroll taxes that are deducted from an employee's earnings. State taxes contribute to state funding, while Social Security and Medicare taxes are part of the Federal Insurance Contributions Act (FICA) and are used to fund the Social Security and Medicare programs, respectively. Thus, the correct response highlights that federal unemployment tax is unique in its treatment as an employer liability rather than a direct deduction from employee wages.