The amount of federal income taxes withheld from an employee's paycheck is determined by:
A)The employee's annual earnings rate and number of withholding allowances
B)The employer's merit rating
C)The amount of social security taxes
D)Multiplying the gross pay by 6.2%
E)The employee's credit rating

Question

Quizplus · Accepted Answer

The amount of federal income taxes withheld from an employee's paycheck is determined by their annual earnings rate and number of withholding allowances. The employer uses the information provided by the employee on their W-4 form to calculate the appropriate amount of taxes to withhold. Factors such as filing status, dependents, and other deductions can also affect the amount withheld.

The Amount of Federal Income Taxes Withheld from an Employee's