Asked by Sichen Zhang on May 12, 2024
Verified
The amount of federal income tax withheld from employee pay depends on the employee's income and the number of withholding allowances claimed by the employee.
Federal Income Tax
A tax levied by the United States Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.
Withholding Allowances
The exemptions claimed by an employee on their W-4 form to determine how much of their income is withheld for taxes.
- Understand the factors that affect the amount of federal income tax withheld from employee pay including withholding allowances.
Verified Answer
HB
Hailey BrookeMay 16, 2024
Final Answer :
True
Explanation :
This statement is true, as the amount of federal income tax withheld is calculated based on the employee's income and the number of withholding allowances claimed on their W-4 form.
Learning Objectives
- Understand the factors that affect the amount of federal income tax withheld from employee pay including withholding allowances.