Question

which of the following best describes withholding tax? when an employer deducts health benefits and retirement contributions from a paycheck when an individual must pay the entirety of their income taxes on the annual tax day when an employer deducts income tax payments from an employee’s paycheck

Explanation:

Withholding tax is the amount an employer withholds from an employee's wages to pay taxes (income tax, etc.) on their behalf. The first option is about benefits/retirement deductions, not tax. The second describes paying taxes in a lump sum on tax day, not withholding. The third matches the definition of withholding tax.

Answer:

C. when an employer deducts income tax payments from an employee’s paycheck (assuming the third option is labeled C; if not, the option text: "when an employer deducts income tax payments from an employee’s paycheck")