Greger Peterson Is a Senior Manager at a Public Accounting

question 6

Multiple Choice

Greger Peterson is a senior manager at a public accounting firm making a base salary of $180,000 a year ($15,000 per month) .Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum.Assuming the Social Security maximum base amount is $118,500,through what month will Social Security be withheld?

• A)Social Security will be withheld through the month of August.
• B)Social Security will be withheld through the entire year.
• C)Social Security will be withheld through the month of January.

---

Definitions:

Performance Evaluation

The process of assessing the effectiveness, efficiency, and achievements of an employee, department, or organization against predetermined benchmarks or objectives.

Operating Departments

Specific areas within a business that are responsible for certain operations related to the production of goods or delivery of services.

Logistics Department

A division within a company or organization responsible for managing the movement and storage of goods, services, and information.

Variable Costs

Expenses that change in proportion to the production or sales levels, including labor and materials.