Which of the Following Is a Tax on Labor

question 10

Multiple Choice

Which of the following is a tax on labor?

• A)Medicare tax
• B)inheritance tax
• C)sales tax
• D)All of the above are labor taxes.

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Definitions:

Borrowing Funds

The act of obtaining money from another party with the promise to return the principal amount along with interest.

Accounts Payable

Accounts payable represents the amounts a company owes to suppliers or creditors for goods or services received that have not yet been paid for.

FICA Taxes

Taxes imposed on both employees and employers to fund Social Security and Medicare, based on a percentage of the employees' wages.

SUTA Taxes

State Unemployment Tax Act taxes that employers pay to provide unemployment benefits to workers who lose their jobs.