Question

stacy thinks her employer may not be withholding the correct amount from her paychecks for state inco she made arrangements to have 19% of federal income tax withheld for state income tax. on her last paycheck, the federal withholding was $163.88 and her state income tax withholding was $24.58. whic following statements is true? a. stacy’s employer is withholding the correct amount for state income tax. b. stacy’s employer is withholding too little for state income tax. c. stacy’s employer is withholding too much for state income tax. d. stacy’s employer should not be withholding state income tax. please select the best answer from the choices provided a b c d

Explanation:

Step1: Calculate correct state tax

To find the correct state income tax withholding, we calculate 19% of the federal withholding. The federal withholding is $163.88. So we use the formula: $0.19\times163.88$.
Calculating this: $0.19\times163.88 = 31.1372\approx31.14$.

Step2: Compare with actual withholding

The actual state income tax withholding is $24.58. Since $24.58 < 31.14$, the employer is withholding too little.

Answer:

b. Stacy's employer is withholding too little for state income tax.