Certified Payroll Professional Practice Exam

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How are Federal Income Tax Withhold Requirements typically satisfied?

By issuing stock options

By withholding from employee wages

Federal Income Tax withhold requirements are typically satisfied by withholding from employee wages. Employers are responsible for withholding the correct amount of federal income tax from their employees' paychecks based on the information provided by the employee on their Form W-4. This withheld amount is then sent to the IRS on behalf of the employee. Stock options, bonuses, and adjusting insurance premiums are not typical methods for satisfying Federal Income Tax withhold requirements.

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By providing bonuses

By adjusting insurance premiums

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