Identify and explain the four primary types of taxes that businesses pay

Answer

Hi,

They are; income tax, self-employment tax, employment tax and Excise tax

Explanation

All businesses are expected to file income tax return on yearly basis. Some pay taxes as they earn the income. The self-employment tax is imposed to contribute to social security and health care cover for a person who works for him or herself. Employment taxes are a mandatory to employers who are required to pay it to cover social security and healthcare taxes and federal unemployment tax for the workers. Some businesses are levied excise tax depending on the goods sold or manufactured, the type of business operation and the type of equipment and products used.

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