Wages Paid by an Employer to an Employee Who Is

question 10

True/False

Wages paid by an employer to an employee who is the employer's child under age 18 are not subject to federal FICA and unemployment taxes.

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Definitions:

Legally Binding

An agreement or contract that is enforceable by law.

Psychological Contract

An unwritten agreement that outlines mutual expectations, obligations, and benefits between employers and employees, beyond formal contracts.

Unwritten Expectations

These are the implicit or assumed standards or behaviors that are not formally documented but are understood and followed within a group or organization.

Employees

Individuals who are hired by organizations to perform specific duties in exchange for compensation.