In Determining Whether an Employee's Accumulated Earnings Have Reached the Maximum

question 32

True/False

In determining whether an employee's accumulated earnings have reached the maximum amount subject to FICA tax deductions, the employer must use the calendar year, even if the business operates on a fiscal year ending June 30.

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Definitions:

Timing

The selection of the most opportune moment to initiate or execute an action, which can greatly affect the success or failure of an endeavor.

Mineral Rights

The legal rights to explore for and produce the minerals underneath a piece of land.

Easement

A right granted to a person or entity to use the land of another for a specific purpose, such as access to another property.

Reservation

An arrangement to secure a place or service in advance, such as a hotel room or a seat on a flight.