Alexandra Earned $200 in Tips in June

question 39

Multiple Choice

Alexandra earned $200 in tips in June.When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

• A)June 30.
• B)July 10.
• C)July 31.
• D)Alexandra is not under any obligation to inform her employer of her tips earned in any one month.

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Definitions:

Non-cumulative

A term, often referring to preferred shares or dividends, indicating that if a dividend is not declared, it does not accumulate and is not owed in future periods.

Participating

In the context of financial securities, participating refers to the characteristic of a security that allows its holder to receive additional dividends or profits beyond a specified amount.

Non-cumulative Preferred Stock

A type of preferred stock where dividends are not accumulated if they are not declared.

Par Value

The nominal or face value of a stock or security at issuance, which may not reflect its actual market value.