Mrs. Lincoln was employed by GGH Inc. until October, when she accepted a new position with Murdock Inc. Mrs. Lincoln earned $145,000 compensation from GGH and $36,000 compensation from Murdock. Which of the following statements is false?
A) Murdock must withhold Social Security tax from Mrs. Lincoln's $36,000 compensation.
B) Murdock must withhold Medicare tax from Mrs. Lincoln's $36,000 compensation.
C) Mrs. Lincoln is entitled to an income tax credit for both excess Social Security tax and excess Medicare tax withheld by her employers this year.
D) Both GGH and Murdock must pay the full amount of employer payroll tax on the compensation paid to Mrs. Lincoln.
Correct Answer:
Verified
Q89: Mr. and Mrs. Arlette spent $5,900 for
Q90: Mr. and Mrs. Borem spent $1,435 for
Q91: Linda and Raj are engaged to be
Q92: Mr. and Mrs. Harvey's tax liability before
Q93: Mr. and Mrs. David file a joint
Q95: Mr. and Mrs. Daniels, ages 45,
Q96: Ruth Anne, a single taxpayer, reported $537,600
Q97: Mr. and Mrs. Cox reported $490,000 AGI
Q98: Mr. and Mrs. Reid reported $1,435,700 ordinary
Q99: Mr. and Mrs. Kain reported $80,000 AGI
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents