Who is responsible for paying the employee's Federal Withholding Taxes?

Who is responsible for paying the employee's Federal Withholding Taxes?

• A. The employee
• B. The employer
• C. The IRS
• D. The state government

Answer: (B)

The responsibility for paying an employee's Federal Withholding Taxes lies with the employer. When an employee works for a company, the employer is required to withhold a certain amount from the employee's paycheck to cover federal income taxes. This is part of the employer's obligations under federal tax laws. The employer not only withholds these taxes but is also responsible for submitting them to the Internal Revenue Service (IRS) on behalf of the employee. This system of withholding helps ensure that employees meet their tax obligations gradually throughout the year, rather than facing a large payment at tax filing time. While employees ultimately bear the tax burden since it reduces their take-home pay, it is the employer's duty to manage the deduction and remittance process for these federal taxes, ensuring compliance with the law. This delineation of responsibility is why the employer is identified as the party accountable for Federal Withholding Taxes.

The responsibility for paying an employee's Federal Withholding Taxes lies with the employer. When an employee works for a company, the employer is required to withhold a certain amount from the employee's paycheck to cover federal income taxes. This is part of the employer's obligations under federal tax laws.

The employer not only withholds these taxes but is also responsible for submitting them to the Internal Revenue Service (IRS) on behalf of the employee. This system of withholding helps ensure that employees meet their tax obligations gradually throughout the year, rather than facing a large payment at tax filing time.

While employees ultimately bear the tax burden since it reduces their take-home pay, it is the employer's duty to manage the deduction and remittance process for these federal taxes, ensuring compliance with the law. This delineation of responsibility is why the employer is identified as the party accountable for Federal Withholding Taxes.