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Pretax Salary Deductions

Can you please explain the distinction between Form W-3 and Form W-4 and the purpose of each and what are pretax salary reductions? What effect do pretax salary reductions have on the federal income tax withholding? Can you give me an example of a pretax reduction.

Solution Preview

Employers and other payers file Form W-3 to transmit copies A of paper Forms W-2 to the Social Security Administration.

The W-4 Form is completed by an employee so the employer can withhold the ...

Solution Summary

The solution provides explanations and examples of pretax salary reductions and forms W3 and W4.