Final answer:
The staffing firm cannot withhold applicable taxes related to the cash advance given to the temporary employee as income.
Step-by-step explanation:
In this case, the staffing firm cannot withhold applicable taxes related to the cash advance given to the temporary employee as income.
According to the information provided, the cash advance is meant to cover travel expenses related to the assignment. Taxes on income are typically deducted from wages, not reimbursements for specific expenses.
In general, withholding taxes from an employee's wages is based on the total amount earned as compensation, not on specific advance payments or reimbursements.