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 employee's annual earnings rate and merit rating.
D)Multiplying 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 the number of withholding allowances they claim on their W-4 form. This information is used to calculate the employee's taxable income and the appropriate tax rate to apply. The employer's merit rating, the employee's credit rating, and multiplying gross pay by 6.2% are not factors that affect federal income tax withholding.

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