To compute federal income tax to be withheld:
A)use the net earnings and number of allowances and deduct over-time.
B)use gross earnings,number of allowances,and marital status.
C)use net earnings and Form W-4.
D)None of these answers is correct.

Question

Quizplus · Accepted Answer

Federal income tax to be withheld is computed using the employee's gross earnings, number of allowances claimed, and marital status. This information is entered into the IRS tax tables to determine the amount of tax to be withheld. Overtime is already included in gross earnings. Using net earnings or Form W-4 alone will not give the accurate amount of tax to be withheld.

To Compute Federal Income Tax to Be Withheld