If an employee opts for an additional withholding, what is the minimum federal tax withholding rate they may select?

When an employee opts for additional withholding from their paycheck, they are essentially requesting that an extra amount be taken out beyond the standard withholding calculated based on their wages and tax situations. The minimum federal tax withholding rate that employees may select for this additional withholding dimension is set at 25%.

This rate reflects IRS guidelines intended to ensure that the additional withholding captures an appropriate amount for federal income tax purposes, allowing for either more comprehensive coverage of their tax obligations or for those who anticipate higher tax liabilities. Therefore, when considering the options available, 25% is the correct answer as it aligns with these set guidelines for additional withholdings.

The other rates listed, while possible options in different contexts (like penalty rates or specific circumstances), do not represent the minimum for additional withholding purposes. Thus, it is important for employees to understand the implications of their choices and how they relate to their overall tax responsibilities.