PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN: 9781337619783
Author: BIEG
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 4, Problem 6QD
Justin Holmes, an ex-employee, is entitled to a taxable
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Justin Holmes, an ex-employee, is entitled to a taxable fringe benefit during the first part of this year. Because he wasn’t paid any wages this year, can hisemployer report the taxable fringe benefit on Form1099?
Virginia Pecson is an MWE working in Quezon City. As such, her employer did not withhold any tax from her compensation. In addition to her Statutory Minimum Wage (SMW), she also earned a one-time commission from her employer in September of taxable year 2018.
In what months of the taxable year shall her employer withhold income tax from her SMW?
(a) When she received the commission in September, she ceased to be an MWE. Her employer shall withhold income taxes from her compensation (which includes the SMW) received in the months of September thru December 2018.
(b) None. Her employer may not withhold income taxes from the SMW she received in all the 12 months of 2018. Her employer shall withhold the CWT only from the commission she received in September 2018.
(c) In all the months of 2018.
(d) None of the above.
Romy retired from employment at the age of 48 because he was already qualified under his employer’s retirement plan duly registered with the BIR. He rendered 20 years in service at the time of retirement. Is the retirement benefit of Romy excluded from taxable gross income?
A. Yes, he rendered at least 10 years of service at the time of retirement.
B. Yes, his retirement is compulsory under the retirement benefit plan.
C. No, the retirement pay is taxable because Romy was only 48 years old at the time of retirement.
D. Answer not given.
Chapter 4 Solutions
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Ch. 4 - Prob. 1SSQCh. 4 - Prob. 2SSQCh. 4 - Prob. 3SSQCh. 4 - Prob. 4SSQCh. 4 - Prob. 5SSQCh. 4 - Prob. 6SSQCh. 4 - Prob. 1MQCh. 4 - Prob. 1QRCh. 4 - Prob. 2QRCh. 4 - Prob. 3QR
Ch. 4 - What is the maximum contribution that an employer...Ch. 4 - Prob. 5QRCh. 4 - Prob. 6QRCh. 4 - Prob. 7QRCh. 4 - Prob. 8QRCh. 4 - Prob. 9QRCh. 4 - Prob. 10QRCh. 4 - Prob. 11QRCh. 4 - Prob. 12QRCh. 4 - Prob. 13QRCh. 4 - Trowbridge Company has just completed the...Ch. 4 - Prob. 15QRCh. 4 - Prob. 16QRCh. 4 - Prob. 17QRCh. 4 - Prob. 18QRCh. 4 - Prob. 19QRCh. 4 - Prob. 20QRCh. 4 - Prob. 1QDCh. 4 - Prob. 2QDCh. 4 - Prob. 3QDCh. 4 - Prob. 4QDCh. 4 - Prob. 5QDCh. 4 - Justin Holmes, an ex-employee, is entitled to a...Ch. 4 - Prob. 1PACh. 4 - Prob. 2PACh. 4 - Prob. 3PACh. 4 - Prob. 4PACh. 4 - Prob. 5PACh. 4 - Prob. 6PACh. 4 - Prob. 7PACh. 4 - Prob. 8PACh. 4 - Prob. 9PACh. 4 - Mattola Company is giving each of its employees a...Ch. 4 - Prob. 11PACh. 4 - Prob. 12PACh. 4 - Prob. 13PACh. 4 - Prob. 1PBCh. 4 - Prob. 2PBCh. 4 - Prob. 3PBCh. 4 - Prob. 4PBCh. 4 - Prob. 5PBCh. 4 - Prob. 6PBCh. 4 - Prob. 7PBCh. 4 - Prob. 8PBCh. 4 - Prob. 9PBCh. 4 - Harrington Company is giving each of its employees...Ch. 4 - Prob. 11PBCh. 4 - During the fourth quarter of 2019, there were...Ch. 4 - Prob. 13PBCh. 4 - Prob. 1CPCh. 4 - Prob. 2CP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Freda is a cash basis taxpayer. In 2019, she negotiated her salary for 2020. Her employer offered to pay her 21,000 per month in 2020 for a total of 252,000. Freda countered that she would accept 10,000 each month for the 12 months in 2020 and the remaining 132,000 in January 2021. The employer accepted Fredas terms for 2020 and 2021. a. Did Freda actually or constructively receive 252,000 in 2020? b. What could explain Fredas willingness to spread her salary over a longer period of time? c. In December 2020, after Freda had earned the right to collect the 132,000 in 2020, the employer offered 133,000 to Freda at that time, rather than 132,000 in January 2021. The employer wanted to make the early payment so as to deduct the expense in 2020. Freda rejected the employers offer. Was Freda in constructive receipt of the income in 2020? Explain.arrow_forwardIn 2021, Sonny earns $47,900 and is unemployed for $10,000. What is Sonny's taxable income if he files as Head of Household in 2021 and takes the standard deduction for his filing status?arrow_forwardSonny receives wages of $47,900 and $10,000 of unemployment in 2021. If Sonny files as Head of Household, what is his taxable income after taking the 2021 standard deduction for his filling status?arrow_forward
- Keith's employer reimbursed him $5,000 as part of a employee educational assistance plan. How much of this benefit is taxable to Keith?arrow_forwardA married taxpayer files a separate tax return from his wife and does not participate in an employer-sponsored retirement plan at work. The taxpayer has moved out of the couples' home, but lived with his spouse part of the year. The taxpayer cannot deduct any contributions he makes to his traditional IRA if his modified AGI exceeds $_______________?arrow_forwardIn 2018, GN, a MWE, received from her employer an annual minimum wage salary of P99,702. Aside from this, she also received P8,00 for holiday pay, overtime pay, and night shift differential pay. Furthermore, she received P8,303 as her 13th- month pay. What amounts shall she be taxable on?arrow_forward
- Shelley is a self-employed CPA. In 2020, she had gross revenue of $255,000 and expenses of $40,000 so her net self-employment income on Schedule C was $215,000. She files single. What is her self-employment tax? Specify the SS and Medicare amounts. Calculate the amount of surtax, if any, she must pay. How much can she deduct as a FOR AGI deduction?arrow_forwardUnder RA 7641, which is a correct requirement in order that a retirement benefit shall be excluded from gross income? a. The employee is more than 50 years of age at the time of retirement. b. The employee has rendered at least 15 years in service c. The employer has not maintained a reasonable private benefit plan d. The retirement benefit is to be availed for the first time.arrow_forwardBennett is a single individual and received a salary of $28,000 before he retired in October of this year. After he retired, he received Social Security benefits of $4,000 during the year. Read the requirements. Requirement a. What amount, if any, of the Social Security benefits are taxable for the year? Begin by computing the provisional income. Only select items that are applicable to Bennett.(Leave unused cells blank, do not select a label or enter a zero.) Adjusted gross income (excluding Social Security benefits) $28,000 Plus: 50% of Social Security benefits 2,000 Provisional income $30,000 The taxable portion of the Social Security benefits is . Requirements a. What amount, if any, of the Social Security benefits are taxable for the year? b. Would the answer be different if Bennett also had $1,500 of tax-exempt interest? c. What if he had had $6,400of…arrow_forward
- One of the following compensation income of an individual taxpayer is not an exclusion from gross income: a) Monetized vacation leaves not exceeding 10 days a year. b) Separation pay o fan employee who resigned from his employment. c) Retirement benefits of an employee under a qualified benefit plan who has worked for an employer for at least 10 years, who at the time of retirement is not less than 50 years of age, and who avails of the retirement for the first time. d) All of these.arrow_forwardPercy receives a basic salary of $750,000 per annum in 2021. His employer pays rent of $50, 000 per year to an independent landlord. What are his total taxable emoluments for the year 2021arrow_forwardJoanne Plummer is self-employed in 2019. Her Schedule C net income is $36,600 for the year, and Joanne also had a part-time job and earned $4,400 that was subject to FICA tax. Joanne received taxable dividends of $1,110 during the year, and she had a capital gain on the sale of stock of $9,100. Calculate Joanne's self-employment tax using page 1 of Schedule SE of Form 1040.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
What Is And How To Calculate FICA Taxes Explained, Social Security Taxes And Medicare Taxes; Author: Whats Up Dude;https://www.youtube.com/watch?v=fzK3KDDYCQw;License: Standard Youtube License