In the Case of a Part-Time Employee, the Employer Pays

question 47

True/False

In the case of a part-time employee, the employer pays a FUTA tax on only the first $3,500 of earnings (one-half the regular limit).

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Definitions:

CESA Contribution

Funds put into a Coverdell Education Savings Account (CESA) to finance a beneficiary's educational expenses.

AGI

Adjusted Gross Income is the gross income of an individual or entity minus specific deductions, used to calculate taxable income on U.S. federal income taxes.

SIMPLE Plan

A retirement savings plan available for small businesses and self-employed individuals, offering a simplified way to save for retirement.

Salary

A fixed regular payment, typically monthly or biweekly, made by an employer to an employee, especially a professional or white-collar worker.