It is very important to understand the nature of benefits paid by an employer to its employee in order to determine the tax consequences.   Question 5 options:   True   False

Q: Explain how a Bonus arrangement can be used to defer the taxes paid by an employer?

A: Deferral of tax refers to the postponing the tax payment to the next period. In other words, when…

Q: Which of the following types of income is subject to the self-employment tax? a.Dividends from stock…

A: First of all we need to understand what is self emploment- In simple words we can say self…

Q: The prepaid taxes that are paid by a taxpayer can be used to reduce the tax liability of the…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: A minimum wage earner who is also earning a self-employment income is exempt from income tax on the…

A: A minimum wage earner who is also earning a self-employment income, will not be exempt from income…

Q: Which of the following is subject to the creditable withholding tax system?

A: Creditable withholding tax is an advance income tax of the particular tax payee. This would mean…

Q: What is Professional Tax and give examples?

A: A tax is a financial charge imposed by government. It is a source of income for the governments to…

Q: Question 1: Which of the following statements regarding Social Security tax is false? Answer: A. O…

A:

Q: Which of the following is not subject to self-employment tax? a. Gain on the sale of real estate…

A: Self-employment tax: It is a tax levied on the income generated from self-employment. A tax of 12.4…

Q: What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim…

A: The federal government developed the earned income tax credit (EITC) to help low-income and some…

Q: Which of the following statements is correct regarding self-employment tax? W-2 income earned…

A: W-2 is a salary and wages form. In addition to that, W-2 also reports federal taxes and other taxes…

Q: The fringe benefit tax by nature is a final tax. b) The personal expenses of a managerial employee…

A: a. According to section 33(A) of the NIRC fringe benefit tax   on employees income to the withheld…

Q: proper plan

A: The obligation for collecting and remitting withholding taxes to the Internal Revenue Service lies…

Q: The Social Security payroll tax is split equally between the employee and the employer. Would it…

A: Social Security tax is the tax levied on both employers and employees to fund the Social Security…

Q: posit for their pay. C. The fringe benefit must be subject to income tax. D. The amount of the…

A: 1  The right answer is D. The amount of the deduction must be listed on the employee's pay advice. 2…

Q: The more dependents that are claimed, the less tax is withheld from an employee's paycheck.

A: Dependent represents the person who is dependent on the taxable person. The taxable person needs to…

Q: Identify and describe the followings that are exempted from taxation. a. Some persons based on…

A: Income tax- Income tax refers to the tax that is levied on the earnings/ income of a person or…

Q: Generally, all deductions made from an employee's gross pay are required by law. True False

A: Gross pay or salary refers to the total amount which is mentioned in the employment contract…

Q: Which type of deduction does not require the employer to have the employee's written permiss O…

A: From the employees paycheck, there are various deduction which are required to be deducted by the…

Q: Question 6: FUTA tax is paid solely by the employer. Answer: A. True В. False

A: Answer -6 Futa tax is a payroll tax that is solely paid by the employer . In other words, it is…

Q: Taxpayer received a tax-free benefit, perhaps a gift from a company that wanted to increase its…

A: Gifts are exempt from tax up to a certain limit. Beyond this limit the taxpayer has to pay tax on…

Q: 8.  S1: Fringe benefit that is exempt from fringe benefit tax is likewise exempt from any other…

A: S1: Fringe benefits tax (FBT) was a form of tax that companies paid in lieu of benefits they offered…

Q: Which of the following is correct?  a) Fringe benefits are always subject to fringe benefit tax. b)…

A: Fringe benefits are the one which are allowed to the employees by their employers as an incentive…

Q: gift from a company that wanted to increase its business. Why must taxpayer have a fmv basis in the…

A: Gifts are exempt from tax up to a certain limit. Beyond this limit the taxpayer has to pay tax on…

Q: substituted Filing of Tax Return is applicable

A: First option is wrong because the substituted filing of tax return is available to the employee who…

Q: The QBI deduction will reduce both the income tax and self-employment taxes owed by a self-employed…

A: Answer:   False.

Q: You are employed. Your salary is your only source of income. You are subject to which of the…

A: Solution: If salary is only the source income, there we are only subject to income tax.   Business…

Q: Instead of being classified as an employee, MatthewMcGinnis was misclassified as an…

A: Hiring an independent contractor instead of an employee can help the business to save money on…

Q: Discuss the definition of a trade or business. Why does it matter whether a taxpayer is classified…

A: Business is the operation carried by sole owner or partners that include trade and commerce and they…

Q: Please explain the tax implications of compensation in the form of salary and wages from the…

A: SOLUTION COMPENSATION IN THE FORM OF SALARY AND WAGES : COMPENSATION REFER TO THE CASH PRIZES THAT…

Q: It is very important to understand the nature of benefits paid by an employer to its employee in…

A: Benefits provided by employers: when an employee works for a company, then every employer has to…

Q: Which of the following is subject to income tax? A. De minimis benefits B. Income tax paid by the…

A: SOLUTION EXPLANATION- AS DEFINED BY U.S , INTERNAL REVENUE SERVICE "CONVENIENCE OF EMPLOYER…

Q: The Following fringe benefits shall not be subject to basic tax or fringe benefit, except:  a)…

A: Fringe Benefit Tax Fringe Benefit Taxes which are taken from the employee of the business entity to…

Q: f an employee does not complete a Form W-4, the employer must withhold tax as if the employee were…

A: A form that is filed by an employee in order to show their tax situation to their employee is known…

Q: Are bonuses to employees subject to Income Tax? Discuss the tax implications to the taxable income…

A: Income tax An income tax is considered an important direct tax. It is an important source of revenue…

Q: Taxable income represents the amount of tax required to be paid to the BIR.    True or False   You…

A: Notes: “Since you have asked multiple question, we will solve the first question for you. If you…

Q: i. The portion of the payroll tax levied on employers is O regressive, if the incidence is on…

A: Payroll tax is withheld by an employer from an employee's pay. The employer later pays it to the…

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

A: Given statement is false.

Q: The form of employees compensation ir relevant to tax deductibility of the firm true? or false?

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: which of the following is not a COVID-19 tax relief provision available to a self-employed…

A: Solution- Section 80GG – House Rent Paid   Deduction for House Rent Paid Where HRA is not Received…

Q: 3. Which one of the following are valid deductible educational expenses?   A. Professional…

A: Deductible educational expenses: Some of the expenses related to education are deductible. The…

Q: Question 2 The more dependents that are claimed, the less tax is withheld from an employee's…

A: A dependent is an individual who relies on another individual for financial support. Dependents can…

Q: Contributions of the employer for the benefit for the benefit of the employee to retirement,…

A:

Q: 1. It refers to all remuneration for services performed by an employee for his employer under an…

A: ANSWER THE CORRECT OPTION IS B) GROSS COMPENSATION GROSS COMPENSATION REFERS TO ALL REMUNERATION FOR…

Q: What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim…

A: Investment income cannot be more than $3,500 for the 2018 tax year to claim the earned income…