Lesson Eighteen: Taxes

  • What is income tax?

–it’s based on a company’s net income before tax

  • What is self-employment tax

–it’s a social security tax paid by  an owner of a business

  • What is payroll tax?

–it’s based on the amount paid to employees in wages and salaries

  • What is the difference between an employee and an independent contractor?
  • What is sales tax?

–it’s a tax collected from customers and paid to the state and county government on the sale of goods (but not services)

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