The type of tax that is collected by the state government is payroll tax.
What is payroll tax?
Payroll tax is the taxes that are paid on the salaries and the wages of the employees. These taxes are utilized to invest in social insurance timetables, such as Social Security and Health care.
It is the indirect tax that is paid by the employer on the behalf of employees after deducting the amount of tax from the salaries or wages.
Payroll taxes are collected by the federal authorities, but in some cases, it is collected by the state government.
Therefore, the state government collects the payroll taxes in some cases.
Learn more about the payroll taxes, refer to:
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