Which of the Following Statements Is True with Regard to the Reimbursement

question 81

Multiple Choice

Which of the following statements is true with regard to the reimbursement of employee business expenses?

• A)Reimbursements of ordinary and necessary expenses are subject to federal income tax withholding.
• B)Excess reimbursements of ordinary and necessary expenses are never subject to withholding.
• C)Reimbursements received by an employee under a plan which contains a requirement to return excess amounts, and the employee does so, are automatically excluded from the definition of wages subject to withholding.
• D)Provided that reimbursements are received by an employee under a plan which requires the employee to substantiate the expenses to his employer, the amounts are automatically excluded from the definition of wages subject to withholding, without regard to whether the employee actually substantiates the expenditures.
• E)All of the above are true statements.

---

Definitions:

College Instructor

An educator or academic who teaches courses at a college or university level, often focusing on a specific subject area or field of study.

Intergenerational Mobility

The movement or changes in social status and economic position that occur from one generation to the next within a family or community.

Upper Middle Class

A socioeconomic group that is above the middle class, characterized by higher income, education, and professional jobs.

Lower Middle Class

Refers to a social and economic class positioned below the middle class, typically involving individuals or families with modest incomes that manage to meet basic living expenses but have little to no savings.