Final answer:
Employers are required by law to set regular pay periods and paydays, ensuring that employees are paid for their work in a timely manner. Furthermore, employers must withhold payroll taxes from employee wages and pay their portion of taxes, adhering to the tax reporting schedules set by authorities.
Step-by-step explanation:
The statement that employers must establish a regular pay period and payday, and all wages earned during that period or the period before must be paid then is true. Regulations typically require that employees receive their wages at regularly scheduled intervals, which can be weekly, biweekly, semi-monthly, or monthly, depending on the state law and employment contract. Employers must comply with both federal and state labor laws regarding the payment of wages, and these laws are designed to ensure that workers receive timely compensation for their labor.Additionally, employers are responsible for withholding payroll taxes from employees' paychecks, which includes federal income tax, Social Security, and Medicare taxes, as well as any applicable state and local taxes. Employers also pay certain taxes based on employee wages, separate from the deductions taken from an employee's earnings. The withheld taxes are then reported and paid to the appropriate tax authorities usually on a quarterly and annual basis.Implicit contracts between employers and employees suggest a mutual understanding that wages will be relatively stable, offering workers a form of insurance against economic downturns, while employers avoid wage cuts to maintain workforce morale and loyalty. Conclusively, establishing a predictable pay structure and fulfilling tax obligations is not just a legal requirement but also crucial for maintaining a healthy employer-employee relationship.