Compensation Glossary

Excise Taxes

Excise taxes are a wide variety of taxes levied on employers for two main reasons. The first is as a penalty for failing to perform a required action or purposely or accidentally doing something wrong. The second type of excise tax is like a license to perform something. You pay for the privilege of having the right to do something. Most of these excise taxes have to do with the administration of benefit programs or taxes.