Which of the Following Is True About the Employee Tax

question 49

Multiple Choice

Which of the following is true about the employee tax treatment of employer-provided snacks and meals?

• A) Holiday parties and meals provided at special gatherings are always taxable.
• B) All employer-provided snacks and meals are taxable.
• C) Snacks and meals provided on a regular basis are not taxable.
• D) Occasionally provided snacks and meals are not taxable.

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Definitions:

Journal Entry

A record in the books of account that represents a financial transaction.

Payroll Taxes Expense

Taxes that employers are required to pay based on the wages and salaries of their employees, such as Social Security and Medicare taxes.

FICA Tax

A U.S. federal payroll tax used to fund Social Security and Medicare, distributed between employees and employers.

FUTA Tax

A United States federal tax levied on employers to fund state workforce agencies and unemployment benefits.