Question

Keeping federal withholding allowances less than 6, in which of the following cases will the amount of federal tax withheld from gross pay increase? a. Gross pay stays the same and withholding allowances increase. b. Gross pay increases by >$20 and withholding allowances stay the same. c. Gross pay increases by >$20 and withholding allowances increase. d. Gross pay decreases by >$20 and withholding allowances stay the same

Answer 1

We are being asked if how much of the gross pay increases the federal government will take considering that we need to keep federal allowances to be not more than 6. The answer from the given choices is the letter "B" which is "Gross Pay increase will by >$20 and withholding allowances stay the same".