Asked by Reginald Joseph on May 26, 2024
Verified
Supplemental wages are subject to the following taxes:
A) FICA taxes.
B) Federal withholding taxes.
C) Unemployment taxes.
D) All of these.
Supplemental Wages
Supplemental wages are additional income paid to an employee beyond their regular wages, including bonuses, commissions, overtime pay, and severance pay, which may be taxed differently.
FICA Taxes
Taxes imposed by the Federal Insurance Contributions Act, funding Social Security and Medicare, withheld from employees' paychecks and matched by employers.
Federal Withholding Taxes
Income taxes automatically deducted from an employee's paycheck by the employer, sent to the government as partial payment of the yearly tax obligation.
- Understand the various types of taxes applicable to supplemental wages.
Verified Answer
Learning Objectives
- Understand the various types of taxes applicable to supplemental wages.
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