Final answer:
True. Pay-as-you-go requires employers to withhold a specified portion of an employee's wages for taxes.
Step-by-step explanation:
True. Pay-as-you-go requires employers to withhold a specified portion of an employee's wages for taxes. These taxes, known as payroll taxes, include deductions from an employee's wages and taxes paid by the employer based on the employee's wages.
For example, Social Security tax and Medicare tax are deducted from an employee's wages, while the employer also pays their share of these taxes. The employee's portion is typically shown as deductions on their pay stub, but both the employee and employer contribute to the payroll taxes.