Question

Which of the following would affect an employee’s net pay?
a.
Opting out of their employer’s dental insurance plan and putting the money saved into their employer’s health insurance plan
b.
Claiming a different number of dependents and thereby reducing their income tax withholdings
c.
Getting a raise and putting the extra money into a 401(k) plan
d.
Receiving a bonus in the form of extra vacation days


Please select the best answer from the choices provided

A
B
C
D

Answer 1

B

Changing the number of dependents alters income tax withholdings, which directly changes an employee’s take-home (net) pay.