Which of the Following Statements Is True with Regard to the Reimbursement

question 51

Multiple Choice

Which of the following statements is true with regard to the reimbursement of employee business expenses?

• A)Reimbursements of ordinary and necessary expenses are subject to federal income tax withholding.
• B)Excess reimbursements of ordinary and necessary expenses are never subject to withholding.
• C)Reimbursements received by an employee under a plan which contains a requirement to return excess amounts, and the employee does so on a timely basis, are excluded from the definition of wages subject to withholding.
• D)Provided that reimbursements are received by an employee under a plan which requires the employee to substantiate the expenses to his employer, the amounts are excluded from the definition of wages subject to withholding, without regard to whether the employee actually substantiates the expenditures.
• E)All of the above are true statements.

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Definitions:

Voting Rights Act

A landmark piece of federal legislation in the United States that prohibits racial discrimination in voting, enacted in 1965.

Discriminatory Voter Registration Tests

Practices used in the past to prevent certain groups of people, especially African Americans, from voting based on tests that were unfairly administered or inherently biased.

Unauthorized Immigrants

Individuals residing in a country without the legal permission of the government, often referred to as undocumented immigrants.

United States

A federal republic in North America comprised of 50 states, a federal district, and various territories, known for its significant influence on global affairs.