Question

why do businesses withhold money for taxes?
doing so will reduce the amount of taxes that businesses must pay.
individuals will likely not do so of their own volition.
it will increase both the gross and net pay that an employee will receive.

Explanation:

• Option A is incorrect because withholding money for taxes (like payroll taxes) doesn’t reduce the total tax liability; it’s a mechanism to collect taxes owed.
• Option B is correct. Businesses withhold taxes (e.g., income tax, Social Security tax) from employees’ paychecks because individuals may not voluntarily set aside money to pay their taxes, and this ensures tax collection.
• Option C is incorrect because withholding taxes doesn’t increase an employee’s gross or net pay; gross pay is earnings before deductions, and net pay is after—withholding reduces net pay (as taxes are set aside to be paid to the government).

Answer:

B. Individuals will likely not do so of their own volition.