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AssignmentMultiple Choice

Taxes

Question 1 • * HSA 26-27 Economics

People fill out a W-4 form when they first start a new job.What does this form help to determine?

Answer
A
the amount of money that should be added to the employee’s salary
B
the amount of money that should be returned for paying too much in taxes
C
the amount of money that should be withheld in federal taxes
D
the amount of money that should be paid in state taxes

Explanation

A W-4 tells an employer how much federal income tax to withhold from an employee’s paycheck. This helps determine the amount withheld based on the employee’s circumstances; it does not set salary or directly determine a tax refund or state taxes. The correct choice is “the amount of money that should be withheld in federal taxes.”

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