Which of the following statements is false regarding an employee's contribution into a 401(k) tax deferred retirement account? a.The employee's contributions are not subject to FICA tax. b.Upon retirement, payments are then subject to federal income tax. c.Upon retirement, the employee will receive their contributions back in the form of regular payments. d.The employee may be in a lower tax bracket when the retirement income is taxed. e.None of these statements are correct

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.

When a petition is filed with the Tax Court, the taxpayer is required to pay the deficiency only if he loses, not before. (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…

If an employee does not complete a Form W-4, the employer must withhold tax as if the employee were single with no exemptions? True or False

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

Which of the following would constitute tax evasion?   a. Henry salary sacrifices future income for which services have not already been provided into superannuation.   b. Emily defers prepayments of income to a later income year.   c. Jane does not include $50 of interest from her bank account on her tax return.   d. Jia establishes a family trust and distributes income between family members equally.

Federal Unemployment Tax Act taxes are        A. Levied on both employer and employee        B. Levied on employee only        C. Levied on employer only        D. Levied only on the firm's executives        E. None of the above