Amounts Contributed by Employees to a SIMPLE Are Not Subject

question 19

True/False

Amounts contributed by employees to a SIMPLE are not subject to employment tax.

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Definitions:

Overtime Earnings

Compensation received for hours worked in excess of the standard workweek hours, often calculated at a rate higher than the regular hourly rate.

Liability Accounts

Accounts on a balance sheet that represent what a company owes to others, such as loans, accounts payable, mortgages, deferred revenues, and accrued expenses.

Expense Accounts

These accounts are used in accounting to track the consumption of assets or services that contribute to the operation and revenue generation of the business.

Asset Accounts

Representations on a balance sheet of value held, including cash, property, and equipment owned by the entity.