A Tax Levied on the Amount of a Payroll or on the Amount

question 125

Multiple Choice

A tax levied on the amount of a payroll or on the amount of an employee's gross pay isa(n) :

• A)Payroll tax.
• B)Employee tax.
• C)Excess profits tax.
• D)Employer tax.
• E)Federal program.

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Definitions:

Exempt

Not subject to an obligation, duty, or requirement that is typically imposed on others; being free from or not affected by something.

Nonexempt

Pertaining to employees who are covered by minimum wage and overtime pay protections under the Fair Labor Standards Act.

Fair Labor Standards Act

A United States law that sets minimum wage, overtime pay eligibility, recordkeeping, and child labor standards for employees in the private sector and government.

Employee Development

A planned effort to provide employees with the knowledge, skills, and abilities needed to accept new and more challenging job assignments within the company.