Identify the Statement Below That Is False

question 21

Multiple Choice

Identify the statement below that is false.

• A)If an employer is not required to withhold income taxes from an employee's wages, the wages are not taxable to the employee.
• B)In certain situations, income tax withholding by an employer is voluntary.
• C)An employer must deposit with the government an amount of FICA tax that is more than twice the amount withheld from the employee's salary (i.e., the employee's and employer's shares).
• D)If an excess amount of FICA has been withheld for an employee because the employee has multiple jobs, the employee may claim a credit for the excess amount withheld on his or her income tax return.
• E)None of the above.

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Definitions:

Gratuitous Bailment

An arrangement where one party (the bailor) entrusts their property to another (the bailee) without expecting any payment in return, solely for the benefit of the owner.

Legal Obligation

A duty bound by law that requires an individual or entity to act or refrain from acting in a certain way.

Family Heirloom

A valuable object that is passed down from generation to generation within a family, often carrying sentimental value.

Natural Resource Development

The process of cultivating, extracting, and managing natural resources such as minerals, oil, and timber for economic gain.