BUSINESS AND WITHHOLDING TAXES.
Abstract The purpose of this article is (1) to point out the trend in delegating to business a greater and greater share of the burden of tax collection through the medium of withholding taxes on wages; 2) to describe the effects of such a policy on business and (3) to evaluate this development in the light of possible alternatives. Although in the past government has called upon business for assistance in collecting revenue, such activity has been of relatively minor importance in affecting the accounting routines and the operating expense of each particular business involved. Record-keeping detail expanded with the advent of the Social Security Act. Wages exempted from the act were to be recorded separately from those covered by the act. Totals of taxable wages and totals of taxes withheld from wages were to be computed for individuals and for the firm as a unit. Receipts were to be furnished to employees periodically and reports made to the government quarterly, annually and at separate dates. State unemployment laws which required the reporting of specified data at frequent intervals added to the record keeping burden. Thus arose the universal need for more complicated and detailed pay-roll records and equipment.
- DOI
- 10.2308/tar-7036991
- Volume
- 19 (3)
- Pages
- 302-306
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref