Beech Refuses to State Her Marital Status on Form W-4

question 17

Multiple Choice

Beech refuses to state her marital status on Form W-4 which she gave to you, the payroll manager, when she was hired. You should:

• A) tell Beech that it is OK since you know that she was recently divorced and is reluctant to talk about it.
• B) inform Beech that she will have to write the IRS and give her reasons for refusing to state her marital status.
• C) tell Beech that you will have to withhold income taxes as if she were married and had claimed one allowance.
• D) tell Beech that you will have to withhold income taxes according to the withholding table for a single employee with no allowances.
• E) advise Beech to write "It is no business of yours." in the margin of her Form W-4.

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Definitions:

Target Profit

Pre-determined earnings a company aims to achieve within a specific period.

Units Sold

The total number of product units that have been sold during a specific period.

Degree of Operating Leverage

A ratio that measures the effect of a change in sales on operating income by analyzing fixed versus variable costs.

Sales Increase

The rise in the amount of goods or services sold over a specific period, indicating business growth.