Assume that the federal government implements a 10% payroll tax upon employers to finance health insurance for all citizens and residents.Stone will pay this tax instead of purchasing group health insurance.This will cause Stone 's total annual payroll-related expenses to:

Question

Quizplus · Accepted Answer

The payroll tax replaces the cost of purchasing group health insurance, leading to a decrease in total payroll-related expenses by $15,000.

Assume That the Federal Government Implements a 10% Payroll Tax