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

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…

Taxpayers can deduct a nonbusiness bad debt beginning in the year it is deemed partially worthless. True or false

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

Under IFRS, the amounts of long-term employment benefits, such as paid absences and unrestricted sabbaticals, as well as short-term benefits during employment, such as sick leave and vacation pay, are often estimates that need to be remeasured. How are these remeasurements reflected on the financial statements? O Both are included in other comprehensive income. O Remeasurements of long-term employment benefits are included in other comprehensive income, while remeasurements of short-term benefits are included in net income O Both are included in net income. O Remeasurements of long-term employment benefits are included in net income, while remeasurements of short-term benefits are included in other comprehensive income.

Which of the followings is included in taxpayer’s gross income (i.e., taxable)? a.Compensatory damage payments received from physical injury by accident caused by other party. b.Punitive damage payments received. c.Accident and health insurance payments received as loss of income under the policy purchased by the taxpayer. d.Qualified employee discount up to the gross profit percentage for goods. It is nondiscriminatory and employees work for the line of business in which the goods are being sold. e. Employee’s salary during the year, which is contributed to employee’s qualified pension plan.

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…

Employee SUTA Contributions Some states impose a contributions requirement on employees in addition to the contributions made by the employer. Computing an employee's withholding is computationally no different than an employer's... taxable wages (those under the cap) times the state rate for employees. Let's investigate an individual that lives in New Jersey whose monthly wages equal $2,470 and whose earnings to date have not exceeded the New Jersey cap of $ Description Calculation 1. Looking at the chart, in the Employee column, it provides the employee withholding rate (0.705% in New Jersey) and the withholding taxable wage cap. 2. Taxable wages 3. New Jersey employee rate 4. Employee SUTA tax, rounded to the nearest cent $2,470 0.705% $17.41 Making It Work Using the amalgamated State SUTA chart, complete the following. Note: Round all amounts to the nearest cent. Akia Hayden lives in Alaska and has wages of $725.33 per week and has not exceeded the SUTA cap of $ Employee: Hayden,…

All of the following income items are includible in an employee's gross income except: a, Severance pay for cancellation of employment   b, Unemployment compensation   c, Payments from employer while sick or injured   d, Medical insurance premium paid by employer for employee and spouse   e, Moving expense reimbursement

3. Which one of the following are valid deductible educational expenses?   A. Professional development courses required by an employer for retaining a position. B. A tax seminar attended for reasons unrelated to one’s present job. C. A college or vocational course necessary to be considered for a job. D. A professional continuing education program that qualified the taxpayer for a new job.