COGNITIVE ASSESSMENT You Own a Third-Party Business That Provides Networking

question 121

Multiple Choice

COGNITIVE ASSESSMENT You own a third-party business that provides networking services such as EDI, secure data and information transfer, storage, and email. Into what category of business does this business fall?

• A) EAN
• B) NIC
• C) CIN
• D) VAN

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Definitions:

Total Deductions

The sum of all the amounts subtracted from gross income to reduce taxable income, including tax, social security contributions, and other withholdings.

Tax Withheld

The portion of an employee's wages that is not included in their paycheck because it is sent directly to the government as partial payment of their annual income tax.

W-2

A form used in the United States to report wages paid to employees and the taxes withheld from them to the Internal Revenue Service (IRS).

1099 Form

An IRS tax form used to report various types of income other than wages, salaries, and tips.