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Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips?

A. Tips amounting to $10 or more in a calendar month must be reported by tipped employees to their employers.
B. The withholding of federal income taxes on employees' reported tip income is made from the amount of tips reported by employees.
C. When employees report taxable tips in connection with employment in which they also receive regular wages, the amount of tax to be withheld on the tips is computed as if the tips were a supplemental wage payment.
D. Employers do not withhold FICA taxes on the tipped employees' reported tip income.
E. None of the above statements is correct.

Sagot :

GinnyAnsweridn

Final answer:

Tipped employees must report tips of [tex]$10 or more in a calendar month to their employers for tax purposes.


Explanation:

The correct statement regarding the withholding of federal income taxes and social security taxes on tips is:

  1. Tips amounting to $[/tex]10 or more in a calendar month must be reported by tipped employees to their employers.

This is important to ensure accurate tax reporting and compliance with tax regulations.


Learn more about Federal income taxes and social security taxes on tips here:

https://brainly.com/question/41890123


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