Which of the following amounts is subject to federal income tax withholding?

Comprehensive and Detailed Explanation:

Federal income tax withholding applies to most forms of employee compensation, but some benefits

are tax-exempt.

Option A (401(k) Deferral) is incorrect because pre-tax contributions to a traditional 401(k) are not

subject to federal income tax (but are subject to FICA).

Option C (Military Moving Expenses) is incorrect because qualified military moving expenses are

excluded from taxable income under the Tax Cuts and Jobs Act (TCJA).

Option D (HSA Contribution) is incorrect because pre-tax HSA contributions made through payroll

deduction are tax-exempt.

Option B (Salary Advance) is correct because any advance on future wages is treated as taxable

compensation when paid, and income tax must be withheld.

Reference:

IRS Publication 15 – Taxable and Non-Taxable Compensation

Payroll.org – Payroll Taxable Income Guidelines