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:

Consignment

An arrangement in which goods are left with a third party to sell, but the ownership remains with the supplier until the goods are sold.

Warranty Repairs

Warranty repairs are services provided to fix defects in products that are under warranty without additional charge to the consumer. These costs are often anticipated and accounted for by the manufacturer.

Physical Count

A process of manually counting actual inventory to verify quantities and ensure accuracy of records.

Lower Of Cost

An accounting principle that valuates inventory at the lower amount between its original cost and current market value.