Question

ANSWER ALL QUESTIONS 1. Which of the following is considered to be an advantage of the...

ANSWER ALL QUESTIONS

1. Which of the following is considered to be an advantage of the 401k plan, according to the textbook?

a. minimal expense to the employer

b. no annual contribution required

c. owner employees MAY contribute

d. all of the above

2. Which of the following business types are allowed to establish a 401k?

a. LLCs

b. C-Corporations

c. Sole Proprietors

d. All of the above

3. What amount of an employee's wage is subject to Medicare Tax?

a. the full amount of wages earned

b. only 6.2% of wages earned

c. only the wage base of $137,700

d. none of these answers are correct

4. The catch up provision allows an employees who is over a certain age to contribute an extra how much to their 401k?

a. $5,000

b. $ 5,500

c. $6,000

d. $6,500

5. True or False, an employer who is contributing to a 401k plan for their employees, can elect to withold their employees salary deferral until they're ready to invest it?

a. true

b. false

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Q1) D) all of the above

Explanation: All the points mentioned above are the advantages of 401(k) plan

Q2) D) all of the above

Explanation: all the business types mentioned, can opt for 401 k plan

Q3) D) none of these answers are correct

Explanation: Medicare taxable wage refers to the employee wages on which Medicare tax is paid. It is calculated as the employee’s gross earnings less the non-taxable items, without any maximum on gross wages. Employers are required to withhold 1.45% of employee’s Medicare wages as Medicare tax and submit a matching amount to cover the costs of the Medicare program.

Q4) D) 6,500

Explanation: People above the age of 50 or older can make an additional deposit of $6,500

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following statements is true? a. Individuals that save in an employer-sponsored retirement plan...
Which of the following statements is true? a. Individuals that save in an employer-sponsored retirement plan will have greater after-tax income and wealth than those who do not save in this plan. b. Employer-sponsored savings plans are beneficial because the employer pays the taxes on the money contributed to retirement savings. c. Employees must earn a minimum amount from their employer before they can contribute to the retirement plan. d. Only retirement plans through work provide tax savings.
Which of the following statements about stock bonus plans is false? a. A CODA can be...
Which of the following statements about stock bonus plans is false? a. A CODA can be attached to a stock bonus plan. b. Participants of a stock bonus plan must have the right to demand employer securities on plan distributions. c. Stock bonus plans have a deductible contribution limit of 25 percent of compensation. d. None of the above are false. All are true.
Which of the following is true about a defined contribution pension plan? a) the employer bears...
Which of the following is true about a defined contribution pension plan? a) the employer bears the investment risks of the pension plan; b) the employee bears the investment risks of the pension plan; c) the employer must ensure there are sufficient assets in the plan; d) the employee must ensure there are sufficient liabilities in the plan; e) the employer must report the funded status to the public of the plans of all employees.
1. When would it benefit an employee to defer the receipt of remuneration to the following...
1. When would it benefit an employee to defer the receipt of remuneration to the following year? a. When the employee's tax rate would be decreasing next year. b. When there is an agreement with the employer to defer the receipt of remuneration. c. When the employee's taxable income would be increasing next year. d. When the employee's tax rate would be increasing next year. 2. Which of the following items is not relevant in determining the true value of...
An employer’s arbitration clause will be enforced unless the employee can show that the clause is...
An employer’s arbitration clause will be enforced unless the employee can show that the clause is both procedurally and substantively unconscionable. a. True b. False An example of implicit bias would be where an individual has a conscious bias against persons of a particular race. a. True b. False In a Title VII disparate treatment claim based on sex, the plaintiff will not prevail without proof that “but for” his sex the employer would not have taken the same adverse...
Which of the following statements is true regarding a defined benefit pension plan? Group of answer...
Which of the following statements is true regarding a defined benefit pension plan? Group of answer choices A. Defined benefit plans are relatively easy to handle from an accounting perspective. B. Employers that use defined benefit plans are assuming more risks than employers that use defined contribution plans. C. Defined benefit plans require an employer to contribute a defined sum each period to a pension fund. D. A defined benefit plan requires the employer to fund the plan each year...
1. Evaluate the following two statements. (1) The Ricardian model predicts wages across countries are correlated...
1. Evaluate the following two statements. (1) The Ricardian model predicts wages across countries are correlated with labor productivity differences. (2) In the data there is a correlation between wages and productivity at the national level A Both are true B Both are false C (1) Is false and (2) is true D (1) is true and (2) is false 2. Does the Ricardian model imply that it is bad to trade with low wage countries? A Yes, lower prices...
1) Which of the following is an advantage of the high-low method?             a)      It...
1) Which of the following is an advantage of the high-low method?             a)      It enables the analysis to determine whether or not the data points are linear.             b)      It is quick and easy to apply.             c)      It eliminates most of the data points.             d)      All data points are used in the analysis. 2) Discretionary fixed costs:             a)        vary directly and proportionately with the level of activity.             b)        have a long-term planning...
question 1 which of the following types of earnings are subject to the employer health tax...
question 1 which of the following types of earnings are subject to the employer health tax in ontario a) legislated wages in lieu of notice b) retiring allowance c) pension payments d) all of the above question 2 Teresa drove a company car 15,000 personal kilometres in 2019. the total kilometres driven for the year were 25,000 kilometres. the actual operating cost for this automoblie were $ 868.00, including taxes. what would Teresa's portion of these operating cost be if...
Stephanie is looking at each job in her organization and comparing its value relative to every...
Stephanie is looking at each job in her organization and comparing its value relative to every other job in the organization. When she completes this exercise, she will have done a ________ pay structure wage compression job evaluation rate range 2 points    QUESTION 16 To remain competitive, we will most likely have to________ match the benefits provided by our main competitors. approximately doubly partly half 2 points    QUESTION 17 If the company moves to a state that has...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT