Withholding taxes are deduction made by the taxpayer on behalf of the government and the taxpayers pays the withholdings to the government later. There are specific provisions for withholding under the income tax rules. To choose: The payment that requires compulsory tax withholding.

Question

A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee in all but one of the following situations. In which situation would this not be required? a.A cook who is paid $35,000 a year b.A nanny who earns $22,000 a year c.A baby-sitter who earns $1,300 a year d.A cleaning lady who is paid $8,000 a year e.The taxpayer would not have to pay Social Security and Medicare taxes in any of the above situations.

Answer 1

Question

Chapter 6, Problem 17MCQ

To determine

Concept Introduction:

Withholding taxes are deduction made by the taxpayer on behalf of the government and the taxpayers pays the withholdings to the government later. There are specific provisions for withholding under the income tax rules.

To choose: The payment that requires compulsory tax withholding.

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