Employers Often Withhold Federal Income Taxes Directly from Worker's Paychecks

question 39

Multiple Choice

Employers often withhold federal income taxes directly from worker's paychecks. This is an example of which principle in practice?

• A) Convenience.
• B) Certainty.
• C) Economy.
• D) Equity.
• E) None of the choices are correct.

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Definitions:

Drawer

In the context of financial transactions, the person who writes or issues a cheque or draft directing a bank to pay the specified amount to a third party.

Drawee

The party in a financial transaction who is directed to pay a certain amount of money by the drawer's order.

Payee

The person or entity to whom money is payable, especially in the context of a check, draft, or promissory note.

Specific Time

Denotes a precise moment or period that is identified for the occurrence of an event or action.