Income Tax Fundamentals 2020 (with Intuit Proconnect Tax Online)
38th Edition
ISBN: 9780357108239
Author: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill
Publisher: Cengage Learning
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Question
Chapter 9, Problem 1MCQ
To determine
Concept Introduction:
Withholding Method: Under the withholding method employers are required to withhold taxes from the paid amount to employees for wages, salary, commission, and retirement pay. To withhold income taxes at the prescribed amount employers need some information, provided by the employees by complete the Form W-4.
To indicate:Theamount that is not subject to withholding
Expert Solution & Answer
Answer to Problem 1MCQ
The answer is option “D”
Explanation of Solution
Explanation for correct option:
Under the withholding method employers are eligible to withhold taxes from the paid amount to employees for wages, salary, commission, and retirement pay.
Therefore, the option “D” reimbursement of expenses under a non-accountable plan is not subject to the withholding.
Explanation for incorrect option:
a.
Option A includes the salary, which is allowed to withhold. Therefore, this is incorrect option.
b.
In option B, bonus is an amount paid to employee that is withhold by employer.Therefore, this is incorrect option.
c.
Commission is the amount paid to employee, from which employers are allowed to withhold. Therefore, this is incorrect option.
e.
Reimbursement of expenses under a non-accountable plan is not allowed to be withhold by the employer. Therefore, this is incorrect option.
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Students have asked these similar questions
Which of the following amounts paid by an employer to an employee is not subject to withholding?
Oa. Salary
Ob. Travel expense reimbursements from an accountable plan
Oc. Commissions
UE
Od. Bonus
Oe. All of these choices are subject to withholding.
Which of the following is not deducted from an employee’s salary? a. FICA taxes.b. Unemployment taxes.c. Income taxes.d. Employee portion of insurance and retirement payments.
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
Chapter 9 Solutions
Income Tax Fundamentals 2020 (with Intuit Proconnect Tax Online)
Ch. 9 - Prob. 1MCQCh. 9 - Abbe, age 56, is married and has two dependent...Ch. 9 - Prob. 3MCQCh. 9 - Prob. 4MCQCh. 9 - Prob. 5MCQCh. 9 - Estimated payments for individual taxpayers are...Ch. 9 - Prob. 7MCQCh. 9 - Prob. 8MCQCh. 9 - Prob. 9MCQCh. 9 - Prob. 10MCQ
Ch. 9 - Ran's wage income is $47,350 in 2019. The combined...Ch. 9 - Prob. 12MCQCh. 9 - Prob. 13MCQCh. 9 - Prob. 14MCQCh. 9 - Prob. 15MCQCh. 9 - Prob. 16MCQCh. 9 - Prob. 17MCQCh. 9 - Prob. 18MCQCh. 9 - Prob. 19MCQCh. 9 - Prob. 20MCQCh. 9 - Prob. 21MCQCh. 9 - Bonnie is getting close to retirement and realizes...Ch. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Kana is a single wage earner with no dependents...Ch. 9 - Lamden Company paid its employee, Trudy, wages of...Ch. 9 - Fiduciary Investments paid its employee, Yolanda,...Ch. 9 - Thuy worked as the assistant manager at Burger...Ch. 9 - Prob. 11PCh. 9 - Prob. 13PCh. 9 - Prob. 14PCh. 9 - Allen (age 32) takes a distribution of $20,000...
Knowledge Booster
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