A tax on the wages that a firm pays its workers is called a(n):
A) payroll tax
B) excise tax
C) consumption tax
D) income tax

Question

Quizplus · Accepted Answer

A payroll tax is a tax that is levied on the wages that are paid by a firm to its workers. Examples of payroll taxes can include Social Security and Medicare taxes, as well as state and local taxes that are based on employee wages or salaries. Payroll taxes are different from income taxes, which are levied on an individual's income, rather than on the wages that are paid by an employer.

A Tax on the Wages That a Firm Pays Its