Question

Charitable contributions are:

A) paid by the employer and remitted by the employee

B) paid by the employee and remitted by the employee

C) paid by the employer and remitted by the employer

D) paid by the employee and remitted by the employer

Answer 1

Charitable contributions are typically made directly by the employee and are not deducted by the employer from the employee's wages. They are voluntary and separate from the mandatory payroll deductions and contributions like those to retirement plans such as 401(k)s.

Step-by-step explanation:

Charitable contributions are paid by the employee and remitted by the employee. These are voluntary donations made to non-profit organizations and do not typically involve the employer in the transaction process. Unlike payroll deductions for taxes and social security contributions where taxes are split between employer and employee, or employer contributions such as those to 401(k)s and 403(b) retirement plans, charitable contributions are managed by the employee themselves.

An exception to this might be workplace giving programs where donations are deducted from an employee's paycheck and remitted by the employer to the chosen charity. However, in general, charitable contributions fall under the employee's discretion and are separate from the required deductions and employer contributions that are part of an employee's compensation package.