Rounding Differences with the Employee and Employer Amounts of FICA

question 33

Multiple Choice

Rounding differences with the employee and employer amounts of FICA taxes are handled on the 941 report by:

• A) Any differences are paid in or refunded as appropriate
• B) Line 7 accommodates fraction differences, which accommodates rounding
• C) When differences occur, the numbers are adjusted before the report to balance
• D) None of the above

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Definitions:

Pay Equity

A principle of employee compensation where individuals are paid equally for work of equal value, without discrimination based on gender or other factors.

Simple Random Sample

A subset of a statistical population in which each member has an equal probability of being chosen.

Faculty Members

Individuals who are members of the teaching or academic staff at an educational institution.

Mean

The arithmetic average of a set of numbers, calculated by adding all the numbers in the set and dividing by the count of those numbers.