BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A withholding allowance is used to reduce the amount of tax withheld from each paycheck.
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True
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False
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Explanation:
Detailed explanation-1: -A withholding allowance is an exemption that reduces how much income tax an employer deducts from an employee’s paycheck.
Detailed explanation-2: -A withholding allowance reduces the amount of income tax you withhold from an employee’s paycheck. Employees file IRS Form W-4 to indicate their withholding allowances. Once you know your employees’ withholding allowances, you can calculate their federal income taxes using the wage bracket method.
Detailed explanation-3: -Withholding tax is deducted for paying the tax to the government. Withholding tax is applicable for payments to non-residents that is foreign transactions. What is the Withholding tax payment due date?
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