The amount of federal income tax withheld from employee pay depends on the employee's annual earnings rate and the number of withholding allowances claimed by the employee.

Question

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This statement is true. The more a person earns, the more federal income tax will be withheld from their pay. Additionally, the number of withholding allowances claimed on a W-4 form can also affect the amount of taxes withheld.

The Amount of Federal Income Tax Withheld from Employee Pay