Answer option A is correct.A tax levy is an IRS order for an employer to retain funds from an employee's pay for taxes due in addition to current taxes.A tax levy, under United States Federal law, is an administrative action by the Internal Revenue Service (IRS) under statutory authority, without going to court, to seize property to satisfy a tax liability. The levy includes the power of distraint and seizure 'by any means'. The general rule is that no court permission is required for the IRS to execute a section 6331 levy.Answer option B is incorrect. Medicare isn't an involuntary deduction.Answer option C is incorrect. State income taxes aren't an involuntary deduction.Answer option D is incorrect. Federal income taxes aren't an involuntary deduction.Chapter: Compensation and BenefitsObjective: Total Rewards Defined
Answer option A is correct.
A tax levy is an IRS order for an employer to retain funds from an employee's pay for taxes due in addition to current taxes.
A tax levy, under United States Federal law, is an administrative action by the Internal Revenue Service (IRS) under statutory authority, without going to court, to seize property to satisfy a tax liability. The levy includes the power of distraint and seizure 'by any means'. The general rule is that no court permission is required for the IRS to execute a section 6331 levy.
Answer option B is incorrect. Medicare isn't an involuntary deduction.
Answer option C is incorrect. State income taxes aren't an involuntary deduction.
Answer option D is incorrect. Federal income taxes aren't an involuntary deduction.
Chapter: Compensation and Benefits
Objective: Total Rewards Defined