nightingale3790
contestada

Consider cases where the number of withholding allowances is less than 6. Which will cause the amount of federal income tax withheld to increase?


a.

Gross pay stays the same and withholding allowances increase.


b.

Gross pay increases by more than $20 and withholding allowances stay the same.


c.

Gross pay increases by more than $20 and withholding allowances increase.


d.

Gross pay decreases by more than $20 and withholding allowances stay the same.

Respuesta :

Consider cases where the number of withholding allowances is less than 6.

The amount of federal income tax withheld will increase if the

1. Gross pay increases and withholding allowances remains the same or

2. Gross pay remains the same and withholding allowances decreases

Option B is correct. The amount of federal income tax withheld will increase when Gross pay increases by more than $20 and withholding allowances stay the same

Hope this helps..!!

Thank you :)

Federal income tax, when withholding allowances is less than 6, the Gross pay increases by more than $20 and withholding allowances stay the same.

What is federal income tax?

Federal income tax is the tax which is used to develop and run the city or country and charged on the citizen resides their.

The value of  federal income tax changes with change in withholding allowances and gross pay as-

  • The federal income tax is increases when the gross pay increases but the value of withholding amount is remain same.

  • The federal income tax is increases when the gross pay remain same but the value of withholding amount is decreases.

  • The federal income tax is decreases when the gross pay decreases but the value of withholding amount is remain same.

  • The federal income tax is decreases when the gross pay remain same but the value of withholding amount is increases.

Given information-

The number of withholding allowances is less than 6.

As the number of withholding allowances is less than 6. Thus the withholding allowances is fixed here.

Now the value of federal income tax increases gross pay increases as discussed in first property above.

Hence, Gross pay increases by more than $20 and withholding allowances stay the same. Thus the option B is the correct option.

Learn more about the federal income tax here;

https://brainly.com/question/25504589

Otras preguntas