Question 1

Businesses with $2,500 or less in quarterly tax liabilities can pay the taxes when they file Form 941.

Accepted Answer

A) True 
 B)False  True

Question 2

Under FICA only, cash tips of more than $100 in a month are defined as taxable wages.

Accepted Answer

A) True 
 B)False  False

Question 3

Form 941 is used by employers to make their quarterly return of FICA taxes and withheld income taxes.

Accepted Answer

A) True 
 B)False  True

Question 4

The OASDI taxable wage base is correctly defined as:

Accepted Answer

A) all amounts earned by an employee during a calendar year. 
B) the maximum amount of wages during a calendar year that is subject to the OASDI tax. 
C) all amounts paid an employee during a calendar year. 
D) all amounts either earned by, or paid to, an employee during a calendar year. 
E) none of the above. 
A) all amounts earned by an employee during a calendar year. 
B) the maximum amount of wages during a calendar year that is subject to the OASDI tax. 
C) all amounts paid an employee during a calendar year. 
D) all amounts either earned by, or paid to, an employee during a calendar year. 
E) none of the above.

Question 5

Each year, the FICA (OASDI portion) taxable wage base is automatically adjusted whenever a cost of living raise in social security benefits becomes available.

Accepted Answer

A) True 
 B)False

Question 6

OASDI taxes are levied when the wages are earned by, rather than when paid to, employees.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following deposit requirements pertains to a semiweekly depositor who has accumulated employment taxes of $17,500 on payday, Saturday, May 16, 20--?

Accepted Answer

A) No deposit is required until May 18, the next banking day. 
B) The undeposited taxes should be carried over to the next payday on May 23. 
C) The taxes must be deposited on or before Tuesday, May 19. 
D) The taxes must be deposited on or before Friday, May 22. 
E) None of the above. 
A) No deposit is required until May 18, the next banking day. 
B) The undeposited taxes should be carried over to the next payday on May 23. 
C) The taxes must be deposited on or before Tuesday, May 19. 
D) The taxes must be deposited on or before Friday, May 22. 
E) None of the above.

Question 8

Employers who fail to file employment tax returns are subject to both civil and criminal penalties.

Accepted Answer

A) True 
 B)False

Question 9

Exempt educational assistance includes payments for tools that employees keep after they complete a course of instruction.

Accepted Answer

A) True 
 B)False

Question 10

The taxes imposed under the Social Security Act consist of:

Accepted Answer

A) two taxes on employers. 
B) two taxes on employees. 
C) OASDI and HI taxes. 
D) taxes on the net earnings of the self-employed. 
E) all of the above. 
A) two taxes on employers. 
B) two taxes on employees. 
C) OASDI and HI taxes. 
D) taxes on the net earnings of the self-employed. 
E) all of the above.

Question 11

The employees of a semiweekly depositor are paid every Tuesday.The accumulated payroll taxes must be deposited on or before the following Friday.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following deposit requirements pertains to a monthly depositor who has accumulated employment taxes of $2,900 at the end of October?

Accepted Answer

A) No deposit is required. 
B) The undeposited taxes should be carried over to the end of November. 
C) The taxes must be deposited on or before November 15. 
D) The taxes must be deposited on or before the next banking day. 
E) None of the above. 
A) No deposit is required. 
B) The undeposited taxes should be carried over to the end of November. 
C) The taxes must be deposited on or before November 15. 
D) The taxes must be deposited on or before the next banking day. 
E) None of the above.

Question 13

Under the safe harbor rule, when employers deposit their tax liabilities, they may have a shortfall of no more than $200 without incurring any penalty.

Accepted Answer

A) True 
 B)False

Question 14

The FICA tax rates and taxable wage bases are exactly the same for the employee and employer when the employee makes $200,000 or less.

Accepted Answer

A) True 
 B)False

Question 15

FICA defines wages as including the cash value of meals provided for the convenience of the employees.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following payments are not taxable for FICA?

Accepted Answer

A) Back-pay awards. 
B) Wage supplements to cover difference between employees' salaries and their military pay. 
C) Dismissal pay. 
D) Difference between employees' regular wages and the amount received for jury duty. 
E) Retroactive wage increase. 
A) Back-pay awards. 
B) Wage supplements to cover difference between employees' salaries and their military pay. 
C) Dismissal pay. 
D) Difference between employees' regular wages and the amount received for jury duty. 
E) Retroactive wage increase.

Question 17

Which of the following deposit requirements pertains to a nonagricultural employer who has employer FICA taxes and withheld employee FICA taxes and income taxes of $125,000 at the end of payday on Friday, August 14, 20--?

Accepted Answer

A) No deposit is required until Tuesday, August 18. 
B) The taxes must be deposited by the close of the next banking day. 
C) The taxes must be deposited on or before August 31. 
D) The undeposited taxes should be carried over to the end of September. 
E) None of the above. 
A) No deposit is required until Tuesday, August 18. 
B) The taxes must be deposited by the close of the next banking day. 
C) The taxes must be deposited on or before August 31. 
D) The undeposited taxes should be carried over to the end of September. 
E) None of the above.

Question 18

FICA includes partnerships in its definition of employer.

Accepted Answer

A) True 
 B)False

Question 19

Form 944 (annual form) can be used by all new employers instead of Form 941.

Accepted Answer

A) True 
 B)False

Question 20

Each of the following items is accurately defined under FICA as taxable wages except:

Accepted Answer

A) value of meals furnished employees for the employer's convenience. 
B) value of meals furnished employees for the employees' convenience. 
C) commissions. 
D) dismissal pay. 
E) $500 award for productivity improvement suggestion. 
A) value of meals furnished employees for the employer's convenience. 
B) value of meals furnished employees for the employees' convenience. 
C) commissions. 
D) dismissal pay. 
E) $500 award for productivity improvement suggestion.

Businesses with $2,500 or less in quarterly tax liabilities can pay the taxes when they file Form 941.

Under FICA only, cash tips of more than $100 in a month are defined as taxable wages.

Form 941 is used by employers to make their quarterly return of FICA taxes and withheld income taxes.

The OASDI taxable wage base is correctly defined as:

Each year, the FICA (OASDI portion) taxable wage base is automatically adjusted whenever a cost of living raise in social security benefits becomes available.

OASDI taxes are levied when the wages are earned by, rather than when paid to, employees.

Which of the following deposit requirements pertains to a semiweekly depositor who has accumulated employment taxes of $17,500 on payday, Saturday, May 16, 20--?

Employers who fail to file employment tax returns are subject to both civil and criminal penalties.

Exempt educational assistance includes payments for tools that employees keep after they complete a course of instruction.

The taxes imposed under the Social Security Act consist of:

The employees of a semiweekly depositor are paid every Tuesday.The accumulated payroll taxes must be deposited on or before the following Friday.

Which of the following deposit requirements pertains to a monthly depositor who has accumulated employment taxes of $2,900 at the end of October?

Under the safe harbor rule, when employers deposit their tax liabilities, they may have a shortfall of no more than $200 without incurring any penalty.

The FICA tax rates and taxable wage bases are exactly the same for the employee and employer when the employee makes $200,000 or less.

FICA defines wages as including the cash value of meals provided for the convenience of the employees.

Which of the following payments are not taxable for FICA?

Which of the following deposit requirements pertains to a nonagricultural employer who has employer FICA taxes and withheld employee FICA taxes and income taxes of $125,000 at the end of payday on Friday, August 14, 20--?

FICA includes partnerships in its definition of employer.

Form 944 (annual form) can be used by all new employers instead of Form 941.

Each of the following items is accurately defined under FICA as taxable wages except:

The Need for Payroll and Personal Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters

Exam 3: Social Security Taxes

Businesses with $2,500 or less in quarterly tax liabilities can pay the taxes when they file Form 941.

Under FICA only, cash tips of more than $100 in a month are defined as taxable wages.

Form 941 is used by employers to make their quarterly return of FICA taxes and withheld income taxes.

The OASDI taxable wage base is correctly defined as:

Each year, the FICA (OASDI portion) taxable wage base is automatically adjusted whenever a cost of living raise in social security benefits becomes available.

OASDI taxes are levied when the wages are earned by, rather than when paid to, employees.

Which of the following deposit requirements pertains to a semiweekly depositor who has accumulated employment taxes of $17,500 on payday, Saturday, May 16, 20--?

Employers who fail to file employment tax returns are subject to both civil and criminal penalties.

Exempt educational assistance includes payments for tools that employees keep after they complete a course of instruction.

The taxes imposed under the Social Security Act consist of:

The employees of a semiweekly depositor are paid every Tuesday.The accumulated payroll taxes must be deposited on or before the following Friday.

Which of the following deposit requirements pertains to a monthly depositor who has accumulated employment taxes of $2,900 at the end of October?

Under the safe harbor rule, when employers deposit their tax liabilities, they may have a shortfall of no more than $200 without incurring any penalty.

The FICA tax rates and taxable wage bases are exactly the same for the employee and employer when the employee makes $200,000 or less.

FICA defines wages as including the cash value of meals provided for the convenience of the employees.

Which of the following payments are not taxable for FICA?

Which of the following deposit requirements pertains to a nonagricultural employer who has employer FICA taxes and withheld employee FICA taxes and income taxes of $125,000 at the end of payday on Friday, August 14, 20--?

FICA includes partnerships in its definition of employer.

Form 944 (annual form) can be used by all new employers instead of Form 941.

Each of the following items is accurately defined under FICA as taxable wages except:

The Need for Payroll and Personal Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters