An employer who fails to withhold Federal Insurance Contributions Act (FICA) taxes from covered employees' wages, but who pays both the employer and employee shares, will
A. Be entitled to a refund from the IRS for the employees' share.
B. Be allowed no federal tax deduction for any payments.
C. Have a right to be reimbursed by the employees for the employees' share.
D. Owe penalties and interest for failure to collect the tax.
Answer: C. Have a right to be reimbursed by the employees for the employees' share.
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Zale, Inc has provided the following extracts from their budget for the first quarter of the forthcoming year
Jan Feb March Sales (20% cash) $500,000 $750,000 $1,000,000 The company collects 70% of credit sales in the same month and the balance in the next month. Calculate the collections from the customers for the month of February. A) $570,000 B) $540,000 C) $690,000 D) $750,000
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