Final answer:
The federal income tax that is withheld each pay period from an employee's earnings is based on the total earnings of the employee, marital status of the employee, and number of withholding allowances claimed by the employee.
Step-by-step explanation:
The federal income tax that is withheld each pay period from an employee's earnings is based on all of the above: total earnings of the employee, marital status of the employee, and number of withholding allowances claimed by the employee.
When an employee starts a job, they usually fill out a W-4 form that indicates their filing status, such as single or married, and the number of allowances they are claiming. The employer uses this information to determine the amount of federal income tax to withhold from the employee's earnings.
For example, if an employee has higher total earnings, they may fall into a higher income tax bracket and have more federal income tax withheld. Similarly, if an employee is married or has more withholding allowances, their federal income tax withholding may be lower.