Which of the following refers to taxes collected and remitted to the government by an employer from an employee's wages?

The term that refers to the taxes collected and remitted to the government by an employer from an employee's wages is withholding. This process involves taking a portion of an employee's earnings before they receive their paycheck, which is then sent directly to the government on behalf of the employee. Withholding typically constitutes federal income tax, state income tax, and sometimes local taxes, which are calculated based on the employee's earnings and completed tax forms, like the W-4.

Understanding withholding is crucial because it ensures that employees meet their tax obligations throughout the year rather than facing a large tax bill when they file their annual tax returns. Employers are responsible for accurately withholding the correct amounts and remitting these funds to the appropriate tax authorities, reflecting their role in the overall tax system.

In contrast, income tax refers broadly to the tax imposed on personal earnings but does not specifically address the mechanism through which it is collected from wages. Sales tax is a tax imposed on the sale of goods and services, which is paid by the consumer rather than withheld from wages. Payroll tax encompasses taxes such as Social Security and Medicare taxes, which are also withheld from employee paychecks; however, it is a broader category that includes taxes for government programs, not just income tax withholding specifically.