A(n)________ is a tax on wages that employers are required to withhold from employees' pay.

Question

Quizplus · Accepted Answer

Social insurance taxes are taxes that are automatically taken out of an employee's paycheck by an employer. This includes taxes for Social Security and Medicare. These taxes are used to fund social programs that benefit individuals throughout their lifetimes, such as retirement benefits, disability insurance, and healthcare for the elderly.

B) and C) are not correct choices as excise taxes are taxes on specific goods or services, while income taxes are taxes on an individual's income and are often paid directly by the individual, not withheld by the employer.

D) is also not a correct choice as value-added taxes are taxes on the value added to a product or service at various stages of production and are not typically withheld from an employee's paycheck.

A(n)________ Is a Tax on Wages That Employers Are Required