Question

Michele is single with no dependents and earns $23,000 this year. Michele claims sixteen allowances on her Form W-4. Which of the following is correct concerning her Form W-4?

a.Michele may not under any circumstances claim sixteen allowances. b.Michele's employer will require her to verify her right to claim sixteen allowances. c.Michele's employer will submit a copy of her W-4 to the IRS if directed to do so by written notice. d.Michele's employer should ask her to prepare a corrected Form W-4. If Michele is unwilling to update her Form W-4, then her employer should disregard her Form W-4 and withhold at the single taxpayer rate with no allowances. e.None of these choices are correct.

The process for employee withholding involves:

a.the employee provides wage information and the employer completes Form W-4 and withholds based on employee instruction

b.the employee provides filing status and the employer completes the Form W-4 and submits to the IRS for proper withholding

c.the employee completes most of the Form W-4 and the employer submits the form to the IRS and awaits withholding instructions

d.the employee computes the number of allowances on Form W-4 and the employer uses the W-4 information to calculate income tax withholding

Answer 1

: Solution ::

step: 1 of 4

Form W-4

Form W-4 helps an employee in determining the amount of federal tax obligation that is required to be paid respective of the marital status, number of allowances claimed and other related factors.

step: 2 of 4

Person M who is unmarried and has no dependents, earns $23,000 during current year. In the form W-4 person M is claiming 16 allowances for the year 2015.

Employer is not liable to inform or to submit a copy of form W-4 to the IRS without a written notice. Employees are required to provide information to their respective employers there entitlement of number of allowances in their Form W-4s. Also, employers are required to submit copy of form W- 4 to IRS only when they directed to do so by the written notice.

step: 3 of 4

Option “a†is not the correct option because person M can claim for 16 allowances under certain circumstances.

Option “b†is not the correct option because it is not mandatory for the employer to verify person M’s right to claim for 16 allowances

Option “c†is not a correct answer as IRS may ask the employer to submit copy of form W-4 by a written notice.

Option “e†is not the correct option as one of the above options is correct.

step: 4 of 4

In this question option “d†is correct as the employer is liable to submit a copy of form W-4 to the IRS if it directs the employer to do so through a written notice

Therefore the correct answer is option d