A withholding allowance exempts a specific dollar amount of an employee's gross pay from federal income tax withholding.

Name: A withholding allowance exempts a specific dollar amount of an employee's gross pay from federal income tax withholding.
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A withholding allowance allows a certain amount of an employee's income to be exempt from federal income tax withholding. The amount varies based on factors such as filing status and number of dependents claimed on the employee's W-4 form.

A Withholding Allowance Exempts a Specific Dollar Amount of an Employee's