Which of the following statements about the FICA tax is not true?a. The income amount subject to the Social Security portion of FICA tax has increased significantly over the years.b. No FICA taxes are required to be paid by employees or employers in 2020 due to COVIDc. The FICA tax is composed of two parts, Social Security and Medicare.xd. Self-employed individuals pay self-employment taxes.Oe. Wages subject to FICA tax that are received by a self-employed individual reduce the individual's maximum Social Security tax base.

In actuality, despite the COVID-19 pandemic, employers and employees were still obligated to pay…

Answered: Which of the following statements about…

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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12. All of the following payroll taxes are levied against the employer, except for: a. FICA taxesb. federal unemployment taxesc. state unemployment taxesd. federal income taxes withheld
The portion of FICA taxes designated as Medicare is paid by a.employees only. b.the employer and the federal government. c.both the employee and the employer. d.either the employer or the employee, depending on the labor contract. e.neither the employee nor the employer.
ushaben
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 taxes that the employer must pay are __________. social security and Medicare only. federal and state unemployment taxes and employer's FICA. federal and state unemployment taxes and social security
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
dhp
1. true or false
Answer the following questions. (a) Which of the following would appear on payroll tax Form 941? State unemployment tax State Income tax Federal unemployment tax Gross earnings Federal Income tax Employer FICA tax Employee FICA tax
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.
The sole purpose of Social Security taxes is to provide retirement benefits to employees. True False The Social Security wage base for 2019 is $132,900. True False Taxable earnings for Social Security tax are always the same as taxable earnings for federal income tax withholding. True False Collectively, Social Security tax and Medicare tax are referred to as FICA taxes. True False The income threshold for Medicare tax indicates the income level above which no Medicare taxes are levied. True False Employees are required to contribute toward the purchase of disability insurance in all 50 states. True False The contribution limit for a SIMPLE IRA is lower than that for a 401(k) or 403(b). True False ERISA is a set of regulations that dictate the manner in which a cafeteria plan may be administered. True False Flexible spending accounts contain a use it or lose it feature that, although…
The amount of compensation subject to OASDI tax is correctly defined as Select one: a. all amounts either earned by, or paid to, an employee during a calendar year. b. all amounts paid to an employee during a calendar year up to the limit defined by Congress. c. all amounts paid to an employee during a calendar year. d. all amounts paid to an employee during a calendar year up to the limit defined by the IRS. e. all amounts earned by an employee during a calendar year.

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