Which of the Following Payments Are Not Taxable for FICA

question 83

Multiple Choice

Which of the following payments are not taxable for FICA?

• A) Back-pay awards.
• B) Wage supplements to cover difference between employees' salaries and their military pay.
• C) Severance pay.
• D) Difference between employees' regular wages and the amount received for jury duty.
• E) Retroactive wage increase.

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Definitions:

Liquidity

Liquidity refers to the ease with which assets can be converted into cash without significantly affecting their market price, crucial for meeting short-term obligations.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales or revenue.

Profitability

A measurement of an entity's ability to generate income in relation to its revenue, assets, or equity.

Assets

Resources owned by a company that have economic value and can be used to meet its obligations or invest in its operations.