InterviewSolution
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What is tax and its types in terms of financial management? |
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Answer» Tax is defined as a compulsory contribution in the state's revenue, levied by the government on the working class of the state. Tax is levied on commodities, business PROFITS, services, transactions etc. Federal Income Tax: A tax levied by a national government on annual income. State and/or Local Income Tax: A tax levied by a state or local government on annual income. Payroll Tax: A tax an employer withholds and] pays on BEHALF of their employees based on the wage or SALARY of the employee. Unemployment Tax: A federal tax that is GIVEN to state unemployment agencies to fund unemployed workers Sales Tax: A tax imposed by the government at the point of sale on retail goods and services. Foreign Tax: Income taxes paid to a foreign government on income EARNED in that country. Value-Added Tax: A national sales tax collected at each stage of production or consumption of a good. |
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