What is required of employees regarding federal, state, or local taxes?

• A. They should seek tax exemptions to maximize allowances.
• B. They are exempt from local taxes due to military status.
• C. They only pay taxes if they choose.
• D. They must satisfy their obligations as citizens, including paying taxes imposed by law.

Answer: (D)

Paying taxes is a legal obligation tied to earning income, so employees must comply with federal, state, and local tax laws. Military status does not automatically exempt someone from taxes, and taxes aren’t voluntary—you don’t decide to pay or not pay. Withholding from paychecks helps prepay your share, and you settle any remaining amount or refund when you file your tax return. There are legitimate ways to reduce liability through credits and deductions, but the essential requirement is to meet the tax obligations imposed by law.