Identify the following statement that is false.
A)If an employer is not required to withhold income taxes from an employee's wages, the wages are not taxable to the employee.
B)In certain situations, income tax withholding by an employer is voluntary.
C)An employer must deposit with the government an amount of FICA tax that is twice the amount withheld from the employee's salary (i.e., the employee's and employer's shares).
D)If an excess amount of FICA is withheld for an employee because the employee has multiple jobs, the employee may claim a credit for the excess amount withheld on his or her income tax return.
E)None of these statements is false.

Question

Quizplus · Accepted Answer

Statement A is false because even if an employer does not withhold income taxes from an employee's wages, the wages are still taxable to the employee. The responsibility for paying taxes on those wages shifts to the employee, who must pay the tax directly to the government.

Identify the Following Statement That Is False