Checks or money orders for depositing income tax withheld should be made payable to whom?

The correct answer is that checks or money orders for depositing income tax withheld should be made payable to the IRS. This is because the IRS is the federal agency responsible for collecting federal income taxes, including employment taxes that may be withheld from employee wages. When an employer withholds income tax from an employee's paycheck, they are required to remit those funds to the IRS to ensure that the government can properly allocate and manage tax revenues.

Making checks or money orders payable to the IRS ensures that the funds are directed to the appropriate federal authority for correct processing and crediting against the employer's payroll tax liability. This process helps maintain compliance with federal tax laws and regulations, avoiding any potential penalties associated with improper payment handling.

In contrast, choosing other options such as making it payable to the employee or other entities would not fulfill the legal requirements for tax payments, which could lead to significant issues for both the employer and the employee regarding tax liabilities and records.