Alexandra Earned $200 in Tips in June

question 79

Multiple Choice

Alexandra earned $200 in tips in June.When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

• A)July 10.
• B)June 30.
• C)July 31.
• D)Alexandra is not under any obligation to inform her employer of her tips earned in any one month.

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Definitions:

Factor Market

A marketplace where factors of production (e.g., labor, capital) are bought and sold.

Circular-Flow Diagram

A graphical outline that tracks the flow of monetary resources through markets, between companies and household sectors.

Households

Economic units consisting of all individuals who live together and make joint decisions regarding consumption and other financial matters.

Businesses

Entities engaged in commercial, industrial, or professional activities with the goal of generating profits.