A Payroll Tax Is a

question 219

Multiple Choice

A payroll tax is a

• A)fixed number of dollars that every firm must pay to the government for each worker that the firm hires.
• B)tax that each firm must pay to the government before the firm can hire workers and operate its business.
• C)tax on the wages that firms pay their workers.
• D)tax on all wages above the minimum wage.

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Definitions:

Budgeted Selling Price

The price at which a company plans to sell its products or services, often used in budgeting and financial forecasting.

Direct Labor-Hours

A quantification of the total hours spent by employees working directly on the production of goods or services.

Total Cash Collected

The sum of all cash received by a company during a specified period, including sales, accounts receivable collections, and other cash receipts.

Collections

The process of recovering the amounts owed to a business by its debtors or the action of receiving payments.