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. Reference: Professional in Human Resources Certification Study Guide, Sybex, ISBN: 978-0-470-43096-5. Chapter Six: Total Rewards. Official PHR and SPHRCertification Guide, HR Certification Institute, ISBN: 978-1-586-44149-4, Section III, The US Body of Knowledge.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.
Reference: Professional in Human Resources Certification Study Guide, Sybex, ISBN: 978-0-470-43096-5. Chapter Six: Total Rewards. Official PHR and SPHR
Certification Guide, HR Certification Institute, ISBN: 978-1-586-44149-4, Section III, The US Body of Knowledge.
Chapter: Compensation and Benefits
Objective: Total Rewards Defined