Companies are required by law to withhold federal and state income taxes from employees' paychecks and remit these taxes to the government.

Question

Quizplus · Accepted Answer

This statement is true. The Federal Insurance Contributions Act (FICA) requires employers to withhold Social Security and Medicare taxes, and the Internal Revenue Service (IRS) requires employers to withhold federal income taxes from employees' paychecks. Additionally, many states have their own withholding requirements for state income taxes. The withheld taxes are then remitted to the relevant government agency by the employer.

Companies Are Required by Law to Withhold Federal and State