To compute federal income tax to be withheld:
A)use the net earnings and number of allowances.
B)use gross earnings,number of allowances,and marital status.
C)use net earnings and Form W-4.
D)None of these answers are correct.

Question

Quizplus · Accepted Answer

To properly compute federal income tax withholding, the employer needs to know the employee's gross earnings, number of allowances claimed on Form W-4, and marital status. This information is used to determine the employee's taxable income and corresponding tax rate. The net earnings (after deductions) and Form W-4 alone do not provide enough information to accurately calculate federal income tax withholding.

To Compute Federal Income Tax to Be Withheld