Asked by Reginald Joseph on May 26, 2024

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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.
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Brooke MarshallMay 27, 2024
Final Answer :
D
Explanation :
Supplemental wages are subject to FICA taxes, federal withholding taxes, and unemployment taxes, so the correct answer is D, all of these. FICA taxes include Social Security and Medicare taxes, while federal withholding taxes are deducted from an employee's paycheck to cover federal income tax obligations. Unemployment taxes are used to fund state unemployment compensation programs, and employers are required to contribute a portion of their employees' wages to these programs.