Which of the Items Is Not Correct Regarding Withholding

question 27

Multiple Choice

Which of the items is not correct regarding withholding?

• A) Employees that also have self employment income can have additional amounts withheld to avoid estimated tax payments.
• B) Employees cannot claim an allowance for a child unless they are entitled to claim the child as a dependent.
• C) Employees can claim exempt and avoid withholding.
• D) Married employees can choose to be withheld at the higher single rates.

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Definitions:

Corporation

A legal entity separate from its owners, with its own rights and liabilities, capable of conducting business.

Legal Entity

An organization that has legal rights and obligations, including the ability to enter into contracts and own assets, separately from its owners.

Public Corporation

A type of company that issues shares of stock that are publicly traded on one or more stock exchanges.

Common Stock

A type of equity security that represents ownership in a corporation, with certain rights such as voting rights and receiving dividends.