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A Number of Court Cases in the Last Several Decades

question 131

Essay

A number of court cases in the last several decades have involved the application of a state's nexus rules concerning a business taxpayer. What is the significance of the term nexus when discussing state income taxation?


Definitions:

Performance Pay Plans

Compensation strategies designed to directly link employees' pay with their performance or achievements in the workplace.

Discontinuation Rates

The rate at which products or services are discontinued or taken out of production or availability.

Mandatory Indirect Pay

Required compensation benefits provided by employers, such as social security contributions and unemployment insurance, that are not part of direct wages.

Medical Coverage

An insurance benefit that covers the cost of an individual's healthcare needs, usually provided by employers or purchased individually.

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