Question

Future pension liabilities are estimated based on all of the following except a.expected employee compensation levels. b.federal withholding income tax. c.employee life expectancy. d.employee turnover.

Answer 1

Answer:

The answer is B.

Explanation:

The correct option is B. - federal withholding income tax.

Pension liability is the amount of money that a company or government at any level(federal or state) has to account for in order to make future pension payments. It is a future payment that a company or government is obligated to pay its retired employees.

They take into considerations:

1. Their employees turnover

2. Their employees life expectancy

3. Their employees compensation level.

Federal tax level is not the issue because the payment is futuristic and federal tax can change.