Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Payroll and Payroll Taxes

Financial Accounting

9. Current Liabilities

Payroll and Payroll Taxes

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Multiple Choice

Payroll taxes are typically levied on which of the following?

Interest earned on investments

Dividends paid to shareholders

Company profits

Employee wages and salaries

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Verified step by step guidance

Step 1: Understand the concept of payroll taxes. Payroll taxes are taxes imposed on employers and employees, typically calculated as a percentage of the wages and salaries paid to employees.

Step 2: Recognize the scope of payroll taxes. These taxes are specifically levied on employee compensation, such as wages and salaries, and not on other financial activities like interest earned, dividends paid, or company profits.

Step 3: Differentiate payroll taxes from other types of taxes. For example, interest earned on investments may be subject to income tax, dividends paid to shareholders may be subject to dividend tax, and company profits may be subject to corporate income tax. These are distinct from payroll taxes.

Step 4: Confirm that payroll taxes are directly tied to employee wages and salaries. Employers are responsible for withholding payroll taxes from employees' paychecks and remitting them to the government, along with their own contributions.

Step 5: Conclude that the correct answer to the question is 'Employee wages and salaries,' as payroll taxes are specifically levied on this category of financial activity.