Using the following information, calculate an employee’s federal taxable wages:Gross Wages:$1,500.

Comprehensive and Detailed in Depth Explanation:

Federal taxable wages exclude:

401(k) deferral→ pre-tax

Section 125 Cafeteria→ pre-tax

Charitable donations→ post-tax, but not deductible for payroll tax purposes

LTD premiums (post-tax)→ stillincluded in taxable wages

Taxable Wage Calculation:

$1,500 – $150 (401k) – $150 (Section 125) = $1,200

Charitable contributions ($50) and LTD ($7)not excluded

Final Taxable Wages = $1,200 – $0 =$1,200 + $0 – $7 = $1,193

✅Correct answer:C – $1,193.00