Select the correct answer.

Question

Which of the following statements is true regarding taxes?

A.
Some employees in certain states do not pay state income taxes.
B.
Employers are not required to withhold taxes from an employee's paycheck.
C.
Every employee pays the same tax rate for federal taxes.
D.
Social security tax is 5.3% of income.

Answer 1

The correct answer is:

A. Some employees in certain states do not pay state income taxes.

This is true as there are states (like Florida and Texas) that do not have a state income tax.

The other statements are incorrect: B. Employers are generally required to withhold taxes from an employee's paycheck. C. Every employee does not pay the same tax rate for federal taxes; tax rates vary based on income and filing status. D. The Social Security tax rate is 6.2% of income (as of my last knowledge update in 2023), not 5.3%.