A single person earns a gross biweekly salary of $780 and claims 6 exemptions. How does their net pay change due to the federal income tax withheld?
A. No federal income taxes are withheld.
B. They will add $11 to their gross pay.
C. They will subtract $11 from their gross pay.
D. They will add $13 to their gross pay.
Answer (2)
The problem states that no federal income taxes are withheld.
Therefore, the net pay does not change due to federal income tax withholding.
The net pay remains the same as the gross pay, which is $780.
The correct answer is that no federal income taxes are withheld. No federal income taxes are withheld.
Explanation
Understanding the Problem The problem states that a single person earns a gross biweekly salary of $780 and claims 6 exemptions. We are asked to determine how their net pay changes due to federal income tax withheld, given that no federal income taxes are withheld.
Determining the Change in Net Pay Since no federal income taxes are withheld, the amount of federal income tax withheld is $0. Therefore, the net pay will not change due to federal income tax withholding. The net pay will remain the same as the gross pay, which is $780.
Selecting the Correct Option The change in net pay is $0. We need to determine which of the provided options reflects a $0 change in net pay. The option 'They will add $11 to their gross pay' implies an increase of $11, which is not correct. The option 'They will subtract $11 from their gross pay' implies a decrease of $11, which is also not correct. The option 'They will add $13 to their gross pay' implies an increase of $13, which is not correct either. The option 'No federal income taxes are withheld' implies that there is no change in the net pay due to federal income tax withholding, which is correct.
Final Answer Therefore, the correct answer is that no federal income taxes are withheld, which means there is no change in the net pay due to federal income tax withholding.
Examples
Understanding how taxes affect your paycheck is crucial for financial planning. For instance, if you know your gross income and how many exemptions you're claiming, you can estimate your net pay. This helps you budget effectively and understand the impact of tax policies on your personal finances. For example, if your gross biweekly salary is $1000 and no taxes are withheld, your net pay remains $1000. This knowledge empowers you to make informed financial decisions.
The individual’s gross biweekly salary is $780 with 6 exemptions claimed, and no federal income taxes are withheld. Therefore, their net pay remains unchanged at $780. The correct answer is that no federal income taxes are withheld.
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