What can an employer do regarding the compensation of their employees?

An employer has the authority to withhold income and Social Security taxes from their employees' paychecks. This is a fundamental part of payroll processing, where the employer is responsible for deducting these taxes in compliance with federal and state tax laws. By withholding these amounts, the employer ensures that employees meet their tax obligations and contribute to social security programs that provide benefits for retirees, the disabled, and survivors.

In addition to withholding taxes, employers also play a role in determining compensation structures, including wages, overtime pay, and bonuses. This is an essential aspect of managing a workforce and ensuring compliance with labor laws regarding fair pay and employee benefits.

The other options relate to areas outside an employer’s direct influence on employee compensation. For instance, determining hours of operation is about business operations rather than individual compensation packages. Setting zoning laws is a governmental function, not a responsibility of employers. Lastly, controlling environmental contamination involves regulatory compliance with environmental laws, which is a separate concern entirely from employee compensation.