Most employers are levied a tax on payrolls for

A) sales tax
B) medical insurance premiums
C) federal unemployment compensation tax
D) union dues

Employers are required to pay federal unemployment compensation tax, which is a payroll tax used to fund unemployment benefits for workers who have lost their jobs. A and B are not applicable as sales tax and medical insurance premiums are not payroll taxes. D is not applicable as union dues are typically paid by employees, not employers.