Determine who pays individual income taxes, corporate income taxes, and payroll taxes.(1 point)

Question

Responses

Companies pay corporate income taxes and employees pay individual income taxes. Those who are self-employed must pay individual income and payroll taxes.
Companies pay corporate income taxes and employees pay individual income taxes. Those who are self-employed must pay individual income and payroll taxes.

Companies pay individual income and payroll taxes, and employees pay payroll taxes. Those who are self-employed must pay payroll taxes.
Companies pay individual income and payroll taxes, and employees pay payroll taxes. Those who are self-employed must pay payroll taxes.

Companies pay individual income, corporate income and payroll taxes, and employees pay individual income and payroll taxes. Those who are self-employed only have to pay individual income taxes.
Companies pay individual income, corporate income and payroll taxes, and employees pay individual income and payroll taxes. Those who are self-employed only have to pay individual income taxes.

Companies pay corporate income and payroll taxes, and employees pay individual income and payroll taxes. Those who are self-employed may have to pay individual income, corporate income, and payroll taxes.

Answer 1

The correct response is:

Companies pay corporate income taxes and employees pay individual income taxes. Those who are self-employed must pay individual income and payroll taxes.

Here's the breakdown:

1. Corporate Income Taxes: Paid by corporations on their profits.
2. Individual Income Taxes: Paid by individuals, including employees, on their personal income.
3. Payroll Taxes: Usually deducted from employees' wages and paid by employers based on employee wages; self-employed individuals also must pay these taxes as part of their self-employment tax obligations.

Self-employed individuals are responsible for both individual income taxes and payroll taxes (self-employment taxes). Companies do not pay individual income taxes; they only pay corporate income taxes.