Question

the government also collects payroll taxes for the federal insurance contributions act, or fica. fica helps fund social security and medicare. payroll taxes are flat, and employees and employers each pay half. employees usually have 7.65% of their wages withheld from their paychecks. employers match these contributions for a total of 15.3% of a persons original wages. sort the statements by whether they are true about corporate income taxes, payroll taxes, or both. workers and businesses each pay half of this tax. this tax is based on the profits that a business earns. this tax is based on an employees salary. everyone pays the same rate, regardless of how much money they make. corporate income taxes ____ both __ payroll taxes ____

Explanation:

• Corporate income taxes: These are taxes on a business's profits. So the statement "This tax is based on the profits that a business earns" belongs here.
• Both: There are no statements that apply to both in this set (since corporate income tax is on business profits, payroll on employee salaries; payroll has flat rate and shared payment, corporate doesn't have those shared/flat for all in the same way as payroll).
• Payroll taxes:
• "Workers and businesses each pay half of this tax" – from the text, employees and employers each pay half of payroll taxes.
• "This tax is based on an employee's salary" – payroll taxes are based on wages/salary.
• "Everyone pays the same rate, regardless of how much money they make" – payroll taxes are flat (same rate for all, as per the text: 7.65% withheld from employees, employers match, flat rate).

Answer:

• Corporate income taxes: This tax is based on the profits that a business earns.
• Both: (No statements apply here)
• Payroll taxes: Workers and businesses each pay half of this tax; This tax is based on an employee's salary; Everyone pays the same rate, regardless of how much money they make.