2. Decreasing W-4 allowances will ________ the net pay in your paycheck and ______ your total tax burden.

A:increase/decrease
B:Decrease/not change
C:Increase:Notchange
DDecrease/increase

Respuesta :

Decreasing W-4 allowances will decrease the net pay in your paycheck and increase your total tax burden.

Employers use the withholding allowance to determine how much tax to withhold from their employees' paychecks. The amount of tax to withhold is calculated after the withholding allowances are subtracted. Hence, the less allowances claimed on W-4, the more income tax will be withheld and less net pay in your paycheck.

W-4 Allowance - Option D

Decreasing W-4 allowances will decrease the net pay in your paycheck and increase your total tax burden. Employers utilize the withholding commission to recognize the amount of tax to keep from their employees' paychecks. The amount of tax to delay is calculated after the withholding deductions are subtracted. Hence, the fewer allowances claimed on W-4, the higher income tax will be kept and limited net pay in your paycheck.