Question

1. the w-4 tax form is used to ______. epf.ie.2.3

a. tell your employer how much federal income tax to withhold from your paychecks to send to the irs.
b. determine how much your gross pay should be.
c. avoid paying income taxes on your paychecks.
d. file your tax return.

1. what is the difference between gross and net pay? epf.ie.2.1

a. gross pay is after taxes are subtracted but net pay is before taxes are taken out.
b. gross pay is before taxes are subtracted but net pay is after taxes are taken out.
c. net pay is a salary and gross pay is from hourly wages.
d. gross and net pay are basically the same things.

Explanation:

Question 16

The W - 4 form's purpose is to inform employers about the amount of federal income tax to withhold from an employee's paycheck. Option a matches this. Option b is wrong as gross pay is determined by pay rate and hours/work, not W - 4. Option c is wrong as W - 4 doesn't avoid taxes, just adjusts withholding. Option d is wrong as W - 4 isn't for filing tax returns.

Gross pay is the total earnings before any deductions (including taxes). Net pay is the amount an employee receives after deductions like taxes are subtracted. Option a has gross and net reversed. Option c is wrong as both salary and hourly workers have gross and net pay. Option d is wrong as they are different. Option b correctly states the difference.

Answer:

a. tell your employer how much federal income tax to withhold from your paychecks to send to the IRS.

Question 17