Advantages of Hiring One's Own Children to Work in Her/his

question 24

Multiple Choice

Advantages of hiring one's own children to work in her/his business enterprise include which of the following?
I.The corporation can deduct wages paid to the children for work performed.
II.The corporation is required to pay Social Security taxes on the children's earnings.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Transaction

A financial operation between two parties involving an exchange or transfer of goods, services, or funds.

Social Security Income

Social Security Income (SSI) is a government program that provides financial assistance to individuals who are elderly, blind, or have disabilities, based on income needs.

Taxable Amount

The taxable amount is the portion of income or a financial transaction that is subject to taxes according to the laws and regulations of the tax jurisdiction.

Tax Return

A form or forms filed with a taxing authority that report income, expenses, and other pertinent tax information, used to calculate tax liability.