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It must be done for anyone who is an employee.

It is an estimate on the taxes that will eventually be filed. Any amount too high or too low is corrected by payment or refund with the return.

If you are not an employee, but rather an independent contractor (or self e,ployed), you must make estimated payments on your anticipated tax, using for 1040-ES through the year...(basically quarterly)...or you will be subject to substantial interest, penalty (and likely scruitiny).

As an employee, the employer has an obligation to pay certain portions of tax...like half of FICA. That is not true when self employed, where you are essentially both the employee and employer.

Especially in todays world of computers, ID numbers and that you probably would want something at some point that requires having reported, or you have a bank account, or many other types of accounts, or own something at some point of record, or have a legal issue, or a medical one....so many things....it is unlikely ignoring the issue will work for very long.

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Q: What is the law regarding withholding wages?
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