Question
. Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips? A) Tips amounting to $10
.
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 in
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