Josephine Works for Tall Tales Publishing,Inc

question 22

Multiple Choice

Josephine works for Tall Tales Publishing,Inc.The basis for Josephine's contribution under the Federal Insurance Contribution Act (FICA) is based on her

• A)seniority at Tall Tales.
• B)annual wage base.
• C)special job skills.
• D)county of residence.

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Definitions:

Rental Income

Income received from renting out property, such as houses or apartments, which is subject to tax.

Gross Income

The total income from all sources before any deductions or taxes are applied.

Net Income

The total earnings of a person or company after all expenses and taxes have been subtracted from total revenue.

IRS Method

A specific approach or set of guidelines established by the Internal Revenue Service for calculating taxes, deductions, and credits.