The amount of federal income tax withheld from an employee's wages is based on:
A. Wages earned.
B. Number of withholding allowances.
C. Number of hours worked.
D. Both a and b.
E. Both b and c.
2007-12-05 15:46:57 · 4 answers · asked by peter 1 in Business & Finance ➔ Small Business
I would guess D. I know that if you have children or are married you get more allowances than other people do and that if you're married and want to not have to pay money at tax filing time, you file as single and then get money back b/c you overpaid. So this would make sense. Also, the amount of money you earned determines the percentage of wages that is withheld ( I remember this from an accounting class ). D seems like the best answer.
2007-12-05 15:57:35 · answer #1 · answered by Sher 3 · 0⤊ 0⤋
The answer is D.
Federal income tax is to be withheld on all wages earned. The number of withholding allowances helps determine the amount withheld from the wages earned.
Without knowing the wage amount, the number of withholding allowances is meaningless.
Without knowing the number of withholding allowances, too much or too little tax may be withheld from the wages.
You need to know both to calculate it properly.
2007-12-06 00:03:56 · answer #2 · answered by TaxGurl 6 · 0⤊ 0⤋
Federal income tax is based on your earnings for the pay period (weekly, bi-weelky)
then if your single or married,
then how many discounts you apply for
I say A
2007-12-05 23:53:22 · answer #3 · answered by Roy b 2 · 0⤊ 0⤋
D - Although I guess if someone works more hours they will make more money (unless they don't get paid for overtime).
2007-12-05 23:53:34 · answer #4 · answered by Alan S 6 · 0⤊ 0⤋