3. From the following, select the tax that is matched with its correct explanation:
A. Payroll tax: money deducted from
a person's salary that is sent to the
government by the employer.
b. Real estate tax: money paid to the
government to use for building federally
subsidized housing.
C. Sales tax: a percentage of money that the
federal government deducts from the cost
of new purchases.
d. Income tax: money that an employer
pays out of company profits to the federal
government for each person employed.

A.) Payroll tax: money deducted from a person's salary that is sent to the government by the employer.

Explanation:

Payroll tax refers to the mandatory tax deductions imposed by the government on employees. The employer acts as the tax agent and withholds the taxes on every paycheck. The taxes are remitted to the government after collection.

The term payroll tax is used because the tax is based on the amount earned by employees. Sales tax is the tax imposed on the sale of goods and services. Income tax is imposed on income earned.

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