Which of the Following Types of Payments Are Not Taxable

question 26

Multiple Choice

Which of the following types of payments are not taxable wages for federal unemployment tax?

• A) Retirement pay
• B) Cash prizes and awards for doing outstanding work
• C) Dismissal pay
• D) Bonuses as remuneration for services
• E) Payment under a guaranteed annual wage plan

---

Definitions:

Adjustment

An entry made in accounting records to correct or allocate transactions properly.

Service Company

A service company is a business that earns revenue through the provision of services, as opposed to selling physical products.

Merchandise Company

A business that purchases and sells goods, often retail or wholesale, as its primary activity.

Form 1120S

A tax document used in the United States to report the earnings, losses, and dividends of S corporation shareholders.