The type of tax most likely to be a problem for entrepreneurs is:
A)federal income tax.
B)employee payroll taxes.
C)state withholding tax.
D)state sales tax.

Question

Quizplus · Accepted Answer

Employee payroll taxes can be a challenge for entrepreneurs because they are responsible for not only paying their own Social Security and Medicare taxes, but also for withholding and paying their employees' taxes. Failing to properly withhold and pay these taxes can result in severe penalties and fines. Federal income tax, state withholding tax, and state sales tax can also be a challenge for entrepreneurs, but employee payroll taxes are often the most complex and time-consuming.

The Type of Tax Most Likely to Be a Problem