which of the following are tax benefits of a traditional qualified employer defined contribution plan? a. employermatching contributions are not included in the current year's gross income b. Qualified distributions are notsubject to income tax c. Contributions are not included in the current year's gross income d. Investments earningsare not subject to tax until they are distributed

A traditional qualified employer-defined contribution plan offers several tax benefits to…

Answered: which of the following are tax benefits…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Which one of the statement regarding itemized deductions in 2020 is false? Group of answer choices A.Itemized deductions provide relief to taxpayers whose ability to pay taxes has been involuntarily reduced. B.Itemized deductions subsidize desirable activities. C.Itemized deductions include medical expenses, taxes, mortgage interest, charitable contributions, and unreimbursed employee business expenses. D.Taxpayers only itemize deductions if they exceed their standard deduction.
The Employee Retirement Income Security Act (ERISA) requires that companies fund defined-benefit plans, but no such requirement exists for other postretirement benefits such as health insurance. Evaluate whether there should be a requirement that other postretirement benefits be funded.
The substituted Filing of Tax Return is applicable where (choose the exception) The employee earns pure compensation income The employee has only one employer The tax withheld by the employer is correct The employee is also engaged in the exercise of a profession
Which of the following is NOT true about an RESP? Select one: a. Withdrawals are taxed in the hands of the beneficiary b. There is a lifetime contribution limit per beneficiary c. The federal government subsidizes the parents' deposits with a grant d. Deposits are not deductible, beneficiary's withdrawals are not taxable
The QBI deduction will reduce both the income tax and self-employment taxes owed by a self-employed individual. True False
dhp
If an employer does not deduct taxes and contribution from an employee. The employee has the ultimate responsibility to pay the taxes to the Revenue and the Revenue will penalize the employee. true or false
Identify the following statement that is false. a. If an employer is not required to withhold income taxes from an employee’s wages, the wages are not taxable to the employee. b. In certain situations, income tax withholding by an employer is voluntary. c. An employer must deposit with the government an amount of FICA tax that is twice the amount withheld from the employee’s salary (i.e., the employee’s and employer’s shares). d. If an excess amount of FICA is withheld for an employee because the employee has multiple jobs, the employee may claim a credit for the excess amount withheld on his or her income tax return.
For 2018, the Social Security portion of the FICA tax is imposed at a rate of (not including any additional tax for high-income earners): a.6.2 percent for the employee and 7.65 percent for the employer. b.6.2 percent for only the employer. c.6.2 percent for the employee and 6.2 percent for the employer. d.6.2 percent for only the employee. e.None of these choices are correct.
true or false In most situations, the total Social Security taxes levied on employers will exceed the amount of Social Security taxes withheld from employees.
A taxpayer has unutilized or excess Creditable Withholding Taxes (CWT) for the taxable year The taxpayer has collected its CWT certificates or BIR Form 2307 from its income payors/customers. What are the options of the taxpayer in relation to its unutilized or excess CWT?
Which is not correct? a) The tax base of fringe benefit tax is the grossed-up monetary value of the fringe benefit. b) The taxable fringe benefit subject to fringe benefit tax is the excess of the de minimis benefits over P90,000. c) Benefits in the form of properties transferred to the name of the employee are subject to fringe benefit tax in full. d) Benefits provided by the employer for his convenience are exempt from fringe benefit tax.

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