Income taxes are withheld from the​ employee's paycheck.   True   False

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…

Which of the following items is exempt from including into the assessable income for salaries tax purposes? Select one: a. Leave pay b. Commission c. Compensation for termination of employment not provided in the contract d. End of contract gratuities

the amount of payroll tax withheld from an employee’s paycheck by an employer is  a current liability  recorded as an operating expense  not recorded because it is a tax paid by the employee a miscellaneus revenue for the employer

Why are deductions from employees’ earnings classified as liabilities for the employer? For each of the following payroll-related taxes, indicate whether they generally apply to (a) employees only, (b) employers only, or (c) both employees and employers: Federal income tax Medicare tax Social security tax Federal unemployment compensation tax State unemployment compensation tax

Unemployment taxes used to provide funds for previously employed people who are temporarily unemployed.         True         False Previous

i. The portion of the payroll tax levied on employers is O regressive, if the incidence is on employees. O difficult to determine without knowing the relative labor supply and demand elasticities. progressive, if the incidence is on employers. O proportional, if the incidence is on employers.

FUTA taxes impose on employees and therefore are not deducted from employee wages.   A.  True B,  False

1. Which of the following items is normally NOT assessable under salaries tax? a. Payment in lieu of notice to an employee who has been dismissed without adequate notice given by the employer.   b. Tuition fee paid by an employer for an employee's children, where the employer has entered into the relevant contract with the school directly.   c. Reimbursement of medical expenses of an employee by an employer pursuant to the terms provided in the employment contract.   d. Lump sum payment to a resigning employee in consideration of his not engaging in the same industry for two years.   2. Henry Ltd is carrying on business in Hong Kong. It acquires funding from various sources in Hong Kong and makes investment in securities listed in overseas markets. Henry Ltd's directors carry out investment analysis in Hong Kong and instruct its overseas agents to execute the orders of purchase and sale in the overseas stock exchange. During the year 2020/21, $10 million profits were derived from…

Question 2 The more dependents that are claimed, the less tax is withheld from an employee's paycheck. True False