Eva Earned $89 in Tips in March

question 121

Multiple Choice

Eva earned $89 in tips in March.When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

• A)April 10.
• B)April 30.
• C)March 31.
• D)Tips are not subject to payroll taxes if less than $90 in any one month.

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Definitions:

Earnings per Share

A financial ratio calculated by dividing a company's net income by its number of outstanding shares of common stock.

Cash Dividend

A payment made by a company to its shareholders, usually as a distribution of profits.

Paid-in Capital

Funds received by a company from selling its shares to investors, representing the capital provided by shareholders for use in the business.

Common Stock

A type of security that represents ownership in a corporation, with holders typically having voting rights and potentially receiving dividends.