What is tax and its types in terms of financial management?
Answers
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.