For withholding purposes, the term wages includes the total compensation paid to employees for services. Employers withhold federal income taxes on the gross amount of wages before deductions such s state and local taxes, insurance premiums, savings bonds. Withholding taxes are based on taxable wages. In this week's class discussion you will converse with your classmates on deciding what constitutes taxable wages.

Please respond to all of the following prompts:

Question 1: Alex Oberstar, a cook in the Lagomarsino Company cafeteria, is furnished two meals each day during his eight-hour shift. Oberstar's duties require him to have his meals on the company's premises. Should the cash value of Oberstar's meals be included as part of his taxable wages? Explain.

Question 2: Rena Reynolds, one of your firm's workers, has just come into the payroll department and says to you: "I'm thinking of amending my Form W-4 so that an additional $10 is withheld each week. That way I will get a fat refund next year. What do you think of my idea?" How would you reply to Reynolds?