Question 1

Which of the following statements is true with regard to the reimbursement of employee business expenses?

Accepted Answer

A) Reimbursements of ordinary and necessary expenses are subject to federal income tax withholding. 
B) Excess reimbursements of ordinary and necessary expenses are never subject to withholding. 
C) Reimbursements received by an employee under a plan which contains a requirement to return excess amounts, and the employee does so, are automatically excluded from the definition of wages subject to withholding. 
D) Provided that reimbursements are received by an employee under a plan which requires the employee to substantiate the expenses to his employer, the amounts are automatically excluded from the definition of wages subject to withholding, without regard to whether the employee actually substantiates the expenditures. 
E) All of the above are true statements. 
A) Reimbursements of ordinary and necessary expenses are subject to federal income tax withholding. 
B) Excess reimbursements of ordinary and necessary expenses are never subject to withholding. 
C) Reimbursements received by an employee under a plan which contains a requirement to return excess amounts, and the employee does so, are automatically excluded from the definition of wages subject to withholding. 
D) Provided that reimbursements are received by an employee under a plan which requires the employee to substantiate the expenses to his employer, the amounts are automatically excluded from the definition of wages subject to withholding, without regard to whether the employee actually substantiates the expenditures. 
E) All of the above are true statements.

Question 2

For 2015, the maximum base for the Social Security portion of the FICA tax is:

Accepted Answer

A) $118,500 
B) $117,000 
C) $87,900 
D) $84,000 
E) None of the above 
A) $118,500 
B) $117,000 
C) $87,900 
D) $84,000 
E) None of the above

Which of the following statements is true with regard to the reimbursement of employee business expenses?

For 2015, the maximum base for the Social Security portion of the FICA tax is:

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 9: Withholding, Estimated Payments, and Payroll Taxes

Which of the following statements is true with regard to the reimbursement of employee business expenses?

For 2015, the maximum base for the Social Security portion of the FICA tax is:

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters