Utah Contractor Practice Exam

What is the Employers Tax Guide commonly referred to as?

1. Circular D

2. Circular E

3. Circular F

4. Circular G

The correct answer is: Circular E

The Employers Tax Guide is commonly referred to as Circular E. This document, published by the Internal Revenue Service (IRS), provides essential information about federal tax responsibilities for employers, including details on withholding taxes, payroll taxes, and reporting requirements. Circular E is updated annually to reflect any changes in tax law, ensuring that employers have the most current guidelines to comply with their tax obligations. In contrast, Circular D generally covers fuel tax credits and relates to excise taxes on certain fuel types. Circular F pertains to the tax on truckers and tax returns, while Circular G is related to the special tax provisions for manufacturers of alcohol, tobacco, and firearms. These circulars serve different audiences and focus on distinct tax topics, making Circular E the appropriate referent for the Employers Tax Guide specifically.