13
QuizMultiple Choice

Study Guide and Quiz

Question 13 • S25 Introduction to Business A (Theisen)

Why are companies required to perform payroll withholding?

Answer
A
To make sure employees are being paid fairly
B
To make sure employees can pay their taxes
C
To help employees save for retirement
D
To help the company pay its share of taxes

Explanation

Companies withhold part of employees’ paychecks and send it to the government toward the employees’ taxes. This helps employees pay their taxes throughout the year instead of owing the full amount later. The correct choice is “To make sure employees can pay their taxes.”

AI-written and checked against the verified answer.

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