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question 5 of 8 josh just started a new job. he earned $1,900 for two w…

Question

question 5 of 8
josh just started a new job. he earned $1,900 for two weeks of work amount on his paycheck was only for $1,100. what is the most likely r why this occurred?
select a response.
○ he did not account for withholding taxes or deductions.
○ he chose not to fill out a w-4 form when he started his job.
○ he declined to participate in the company’s 401(k) plan.
○ he declined health insurance coverage.

Explanation:

Brief Explanations
  • For the option "He did not account for withholding taxes or deductions": When an employee earns income, taxes (like federal, state, local) and other deductions (e.g., for benefits, retirement plans) are withheld from the gross pay (the total earned) to get the net pay (the amount on the paycheck). If Josh didn't consider these withholdings, he would be surprised that his paycheck is less than his gross earnings.
  • For "He chose not to fill out a W - 4 form when he started his job": Employers are required to have employees fill out a W - 4, and if not filled, the employer withholds taxes as if the employee is single with no allowances, but this doesn't directly explain the discrepancy between expected and received pay in the same way as not accounting for withholdings. Also, it's unlikely an employer would pay without a W - 4 on file in most cases.
  • For "He declined to participate in the company’s 401(k) plan": Declining a 401(k) (a retirement savings plan) would mean no deduction for that, so his net pay would be closer to his gross pay, not lower, so this is incorrect.
  • For "He declined health insurance coverage": Declining health insurance would mean no deduction for health insurance premiums, so his net pay would be closer to his gross pay, not lower, so this is incorrect.

Answer:

A. He did not account for withholding taxes or deductions.