Which statement about the employer definition is true?

• A. A person who employs an individual for wages or salary, lists the individual on the employer's payroll records, and withholds all legally required deductions and contributions
• B. A person who owns a business but hires no one
• C. A vendor who provides services
• D. A customer paying for services

Answer: (A)

In employment terms, the employer is the person or entity that hires someone, pays wages or salary, and handles payroll records and all required tax withholdings and contributions. The statement that describes an employer as someone who hires an individual for wages, lists them on payroll records, and withholds legally required deductions captures the core duties that define an employer—paying the worker and managing payroll obligations. This is what distinguishes an employee relationship from other roles.

The other scenarios don’t fit because owning a business without hiring anyone, acting as a vendor who provides services, or a customer paying for services does not establish the ongoing payroll and tax-withholding responsibilities that define an employer.