Certified Payroll Professional Practice Exam 2026 – Your All-in-One Guide to Exam Success

When the payee does not provide their Social Security number, the backup withholding rate of 28% would apply. This is because the IRS requires payers to withhold taxes at a higher rate (28%) from payments made to individuals who do not provide their correct taxpayer identification number, typically their Social Security number. This measure is in place to ensure that individuals report their income accurately and pay their fair share of taxes. Therefore, option B is the correct answer in this case.