The withholding allowances of an employee affect
A) social security tax withheld.
B) federal income tax withheld.
C) federal unemployment tax owed.
D) state unemployment tax owed.

Question

Quizplus · Accepted Answer

Withholding allowances primarily affect the amount of federal income tax withheld from an employee's paycheck. These allowances are claimed on the W-4 form, and the more allowances claimed, the less federal income tax is withheld. They do not directly affect social security tax, federal unemployment tax, or state unemployment tax.

The Withholding Allowances of an Employee Affect