Question

question 5 of 6
josh just started a new job. he earned $1,900 for two weeks of work, but the amount on his paycheck was only for $1,100. what is the most likely reason for 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 companys 401(k) plan.
he declined health insurance coverage.

Explanation:

• For the option "He did not account for withholding taxes or deductions": When employees are paid, taxes (like income tax, Social Security tax, Medicare tax) and other deductions (e.g., for benefits, retirement contributions if applicable) are withheld from their gross earnings to get the net pay (the amount on the paycheck). If Josh expected $1900 (gross) but got $1100 (net), it's likely he forgot that these withholdings/deductions reduce the amount he takes home.
• For "He chose not to fill out a W - 4 form when he started his job": Employers are required to withhold taxes even if an employee doesn't fill out a W - 4 (they use default withholding), so this wouldn't be the main reason for a large difference between expected and actual pay.
• For "He declined to participate in the company's 401(k) plan": Declining a 401(k) means no deduction for that, so it wouldn't reduce his paycheck. In fact, not participating would mean more take - home pay, not less.
• For "He declined health insurance coverage": Declining health insurance means no deduction for that, so it also wouldn't reduce his paycheck. Not having health insurance deductions would mean more money in his paycheck, not less.

Answer:

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