Total Wages Employees Earned for the Payroll Period Are Called

question 111

Multiple Choice

Total wages employees earned for the payroll period are called ________.The amount of wages the employees take home is the ________.

• A)gross pay;withholding amount
• B)gross pay;net pay
• C)net pay;gross pay
• D)net pay;taxes withheld amount

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Definitions:

AMT Exemption

An amount exempt from the Alternative Minimum Tax, designed to ensure that taxpayers with higher income pay a minimum amount of tax.

Corporation

A legal entity owned by shareholders, with rights and liabilities distinct from those of its owners, and subject to corporate income tax.

AMT Income

Alternative Minimum Tax income calculates income with different rules than regular taxes, aiming to ensure taxpayers with high income pay a fair share of taxes.

Dividend Income

consists of payments received by shareholders from stocks or mutual funds, representing a share of the profits of the corporation or fund.