Which of the Following Is an Employer Not Required to Withhold

question 29

Multiple Choice

Which of the following is an employer not required to withhold from an employee's payroll check?

• A) FICA
• B) Withholding
• C) Local income tax where applicable
• D) State income tax where applicable
• E) Alimony

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Definitions:

Profit-Sharing

A company policy of distributing a portion of its profits to its employees, often based on their performance or as part of their compensation.

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a stock at an agreed-upon price within a certain timeframe.

Incentive System

An incentive system is a business tool that uses rewards and penalties to motivate employees to achieve specific objectives and improve performance.

Employment Stability

The assurance of consistent work and income for employees, contributing to job satisfaction and loyalty.