FICA Defines All of the Following as Wages Except

question 8

Multiple Choice

FICA defines all of the following as wages except :

• A) year-end bonuses.
• B) standby payments.
• C) total cash tips of $15 received by a tipped employee in May.
• D) employees' social security taxes paid for by the employer.
• E) first six months of sick pay.

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Definitions:

Cash Dividend

A payment made by a company out of its profits to shareholders in the form of cash.

Financing Activities

Activities that result in changes in the size and composition of the equity and/or borrowings of a company.

Cash Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Net Cash

The balance of cash remaining once cash inflows and outflows have been reconciled.