Which of the following government regulations would a business most likely avoid if it no longer had employees?

• A. Payroll tax withholding requirements
• B. Income tax filing for the business
• C. Sales tax collection on goods sold
• D. Environmental protection regulations

Answer: (A)

Verified step by step guidance

1. Understand the context of the problem: The question is asking which government regulation a business would most likely avoid if it no longer had employees. This requires identifying regulations specifically tied to having employees.
2. Review the options provided: Analyze each regulation to determine its connection to employees. For example, payroll tax withholding requirements are directly related to employee wages, while income tax filing, sales tax collection, and environmental protection regulations are broader and not necessarily tied to having employees.
3. Focus on payroll tax withholding requirements: These are taxes that employers are required to withhold from employees' wages (e.g., Social Security, Medicare, and federal income tax). If a business no longer has employees, it would not need to withhold or remit these taxes.
4. Eliminate unrelated regulations: Income tax filing for the business, sales tax collection, and environmental protection regulations are obligations that exist regardless of whether the business has employees. These are not directly tied to employment.
5. Conclude that payroll tax withholding requirements are the regulation most likely avoided if the business no longer has employees, as they are specifically tied to employee wages.