3. Social Security pensions are financed by voluntary contributions by workers. 4. The gross replacement rate measures the ratio of taxes paid per year by workers to their annual Social Security pension when they retire. 5.
What type of work was the income from? Was the income in the form of a salary or wages? (1-2 sentences. 1.0 points) Describe a real or made up but realistic example of unearned income that you or someone you know has received. (1-2 sentences.
B2 – Describe the information which needs to be shown on an employee pay slip The information on the pay slip keeps records for three different parties; the tax office, the company or employer, the employee being paid. The date This is the date the finances should be credited into the designated bank account. This is usually made by BACS transfer, although employee could also be paid in cash or by Cheque. Employee personal information The name of the employee being paid and sometimes a home address will be included on the payslip. National Insurance Every Employee should have an NI number to work in the UK.
Homework Week 3 7. Differentiate between the following: active income, passive income, and portfolio income. Active income( which is interchangable with earned income) comes from direct efforts of the taxpayer. Examples is wages, salaries, and commissions. Passive Income is income that is earned through a trade or investments where the taxpayer does not spend much time or effort.
(p. 193) Implications of _______________ theory are that pay level affects an employer's ability to recruit. a. human capital B. reservation wage c. signaling d. efficiency 5. (p. 194) ____________ sets a maximum pay level an employer can pay. a. Government legislation B.
Intrinsic value is the sum of all the future expected free cash flows converted into today’s dollars. i. Who are the providers (savers) and users (borrowers) of capital? How is capital transferred between savers and borrowers? The providers (savers) are households and the U.S. government when it runs a surplus.
The excess of nonbusiness capital losses over nonbusiness capital gains must be added to taxable income to compute the net operating loss of an individual. ANS: T PTS: 1 REF: p. 7-21 49. An individual taxpayer who does not itemize deductions uses the standard deduction to compute the excess of nonbusiness deductions over the sum of nonbusiness income and net nonbusiness capital gains for purposes of computing net operating loss. ANS: T PTS: 1 REF: p. 7-22 50. When a net operating loss is carried back to a non-loss year, the net operating loss is a miscellaneous itemized deduction.
True False A taxpayer may be required to pay tax on a gain the taxpayer realizes when she sells her principal residence. True False For tax purposes a dwelling unit is a residence if the taxpayer's number of personal use days of the unit is more than ten days. True False When determining the number of days a taxpayer has rented a home during the year, any days when the home is available for rent but
During the tax year, 2010, the Petersan’s sold their primary residence for $520,000. A line by line review of the Petersan’s 2010 tax return will show the appropriate treatment of income, deductions, child care expense and the sale of
According to the IRS, “for most workers, the credit is based on the taxable wages reported to them on Forms W-2. Self-employed individuals figure the credit using the net profit or loss they receive from a business or