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

Answer 1

b. Claiming a different number of dependents and thereby reducing their income tax

Step-by-step explanation:

Net pay is the money that an employee receives after all deductions from their gross pay. Net pay is the amount that gets into the employee's salary account. The net pay is affected by an increase or decrease in salary or an increase or decrease in deductions.

Claiming a different number of dependents reduces the amount of income tax withheld. The effect is a reduction in the total deductions. If deductions are reduced, the employee will have higher net pay. The other options do not increase or decrease gross pay or deductions.