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

question 51

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 on a timely basis, are 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 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.

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Definitions:

Neurotransmitter

Chemical substances that transmit signals across a synapse from one neuron to another neuron or to a target cell.

Amphetamine

A potent central nervous system stimulant that is used in the treatment of attention deficit hyperactivity disorder (ADHD), narcolepsy, and for weight loss, but can also be abused as a recreational drug.

Tranquilizers

Medications used to reduce tension or anxiety, often by depressing the central nervous system.

Placebos

Inactive substances or treatments used as a control in experiments, often to test the effectiveness of medical drugs.