This course covers the annual accounting period for which income is determined. There are also several methods of accounting that are reviewed, primarily the cash basis and the accrual basis. Also covered is the installment method of reporting income. The next section of the course looks at deductible IRAs, nondeductible IRAs, and Roth IRAs, discussing contribution limits, distributions, rollovers, and IRA penalty provisions. Also discussed are SEPs, SIMPLE plans, and other qualified self-employment plans. Covered next are methods of collecting taxes, including withholding from wages and estimated tax payments. The last special circumstance examined is the domestic service employment tax, known as the nanny tax.
final exam score:
final exam status:
95%
Question 20
Incorrect
The wage threshold for Social Security and Medicare taxes for a household employee in 2014 is:
(You Answered) $1,800 or more in a year
$1,900 or more a year
$1,000 or more in a year
Zero: all earnings are subject to Social Security and Medicare taxes for a household employee up to the Social Security wage base
