stacy thinks her employer may not be withholding the correct amount from her paychecks for state income tax…

stacy thinks her employer may not be withholding the correct amount from her paychecks for state income tax. she made arrangements to have 19% of federal income tax withheld for state income tax. on her last paycheck, the federal withholding was $163.88 and her state income tax withholding was $24.58. which of the following statements is true? a. stacys employer is withholding the correct amount for state income tax. b. stacys employer is withholding too little for state income tax. c. stacys employer is withholding too much for state income tax. d. stacys employer should not be withholding state income tax. please select the best answer from the choices provided

stacy thinks her employer may not be withholding the correct amount from her paychecks for state income tax. she made arrangements to have 19% of federal income tax withheld for state income tax. on her last paycheck, the federal withholding was $163.88 and her state income tax withholding was $24.58. which of the following statements is true? a. stacys employer is withholding the correct amount for state income tax. b. stacys employer is withholding too little for state income tax. c. stacys employer is withholding too much for state income tax. d. stacys employer should not be withholding state income tax. please select the best answer from the choices provided

Answer

Explanation:

Step1: Calculate the expected state - income tax

We know that Stacy wants 19% of federal income tax withheld for state income tax. The federal withholding is $163.88. So the expected state - income tax is $163.88\times0.19$. $163.88\times0.19 = 31.1372\approx31.14$

Step2: Compare with the actual state - income tax

The actual state - income tax withholding is $24.58$. Since $24.58<31.14$, the employer is withholding too little for state income tax.

Answer:

B. Stacy's employer is withholding too little for state income tax.