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:

Amenorrhea

The absence of menstruation in someone of reproductive age, which can be a symptom of various medical conditions or the result of natural causes like pregnancy.

Premenstrual Syndrome (PMS)

A collection of physical and emotional symptoms that occur in the one to two weeks before a woman's period.

Toxic Shock Syndrome (TSS)

A rare, potentially fatal condition caused by bacterial toxins, often associated with tampon use or nasal packing.

Secondary Amenorrhea

The cessation of menstrual periods for three months or more after regular menstrual cycles have been established, not due to pregnancy, menopause, or other natural reasons.