When a company computes an employee’s withholdings for income taxes, they use the information provided by the employee on the employee’s W-4, which indicates the employee’s filing status (married, single, etc.) and the number of dependents. An employee is not allowed to determine a flat amount to be deducted each payroll period. Assume that you are working in the payroll department of a large corporation and you notice that a new employee has filled out a W-4 claiming 10 dependents. You went to high school with this particular person and happen to know that the person is single and has no children. What should you do?

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Net sales Cost of goods sold Gross profit Selling, general, and administrative expenses Operating income Other income (loss), net Income before income taxes Provision for income taxes Net income before cumulative effect of change in accounting principle Cumulative effect of change in accounting principle, net of tax Net income Net income per share before cumulative effect of change in accounting principle: Basic Diluted 2000 $9,600,600 7.541,606 2,058,994 1,547.701 $ 511,293 (102,693) 408,600 155,266 253,334 (11,851) 1999 $8,964,900 7,127,678 1,837,222 1,241,552 0.79 $ 0.76 $ 595,670 67,809 663,479 1998 $7,703,279 6,290,227 235,535 1,413,052 918,825 47,021 541,248 194,849 427,944 346,399 $ 241,483 $ 427,944 $ 346,399 494,227 1.36 $ 1.32 $ 1.11 1.09