Question

Pre-tax deductions reduce the amount that an employee will pay for:

A) federal unemployment taxes

B) income taxes

C) voluntary deductions

D) mandatory deductions

Answer 1

Pre-tax deductions reduce the amount that an employee will pay for income taxes.

Step-by-step explanation:

Pre-tax deductions reduce the amount that an employee will pay for income taxes. These deductions are taken from the employee's wages before they are subject to income tax, effectively lowering the taxable income. Examples of pre-tax deductions include contributions to a retirement plan or health insurance premiums.