The Federal Transfer Tax System Includes Three Separate Taxes

question 23

True/False

The Federal transfer tax system includes three separate taxes.

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Definitions:

Temporary

Not permanent; lasting for a limited period of time or intended for short-term use.

Employer's Payroll Tax

Taxes that employers are required to pay on behalf of their employees, which may include contributions to social security, Medicare, and unemployment taxes.

Permanent

A term used in accounting to describe accounts that are not closed at the end of the accounting period, such as assets, liabilities, and equity accounts.

Temporary

Pertaining to or lasting for a limited time; in accounting, referring to accounts that are closed at the end of each accounting period, such as revenue and expense accounts.