Question 1

FICA defines all of the following as wages except:

Accepted Answer

A) year-end bonuses. 
B) standby payments. 
C) total cash tips of $15 received by a tipped employee in May. 
D) employees' social security taxes paid for by the employer. 
E) first six months of sick pay. 
A) year-end bonuses. 
B) standby payments. 
C) total cash tips of $15 received by a tipped employee in May. 
D) employees' social security taxes paid for by the employer. 
E) first six months of sick pay.

Question 2

The Social Security Act does not require self-employed persons to have an account number.

Accepted Answer

A) True 
 B)False

Question 3

Barr fails to make a timely deposit of FICA taxes and withheld income taxes until five days after the due date.The penalty facing Barr is:

Accepted Answer

A) 2% of the undeposited taxes. 
B) 5% of the undeposited taxes. 
C) 10% of the undeposited taxes. 
D) 25% of the undeposited taxes. 
E) none of the above. 
A) 2% of the undeposited taxes. 
B) 5% of the undeposited taxes. 
C) 10% of the undeposited taxes. 
D) 25% of the undeposited taxes. 
E) none of the above.

Question 4

The Social Security Act requires workers to obtain a new account number each time they change jobs.

Accepted Answer

A) True 
 B)False

Question 5

FICA does not consider the first six months of sick pay as taxable wages.

Accepted Answer

A) True 
 B)False

Question 6

Employees may use Form 4070 to report the amount of their tips to their employers.

Accepted Answer

A) True 
 B)False

Question 7

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2016.The latest date on which she may file Form 941 is:

Accepted Answer

A) April 10. 
B) April 30. 
C) May 1. 
D) May 10. 
E) May 15. 
A) April 10. 
B) April 30. 
C) May 1. 
D) May 10. 
E) May 15.

Question 8

The Federal Insurance Contributions Act levies a tax upon the gross earnings of self-employed persons.

Accepted Answer

A) True 
 B)False

Question 9

A monthly depositor is one who reported employment taxes of $50,000 or more for the four quarters in the lookback period.

Accepted Answer

A) True 
 B)False

Question 10

The highest paid executives of a firm are excluded from coverage under the Federal Insurance Contributions Act (FICA).

Accepted Answer

A) True 
 B)False

Question 11

Under SECA, all of an individual's self-employment income is counted in determining the HI tax.

Accepted Answer

A) True 
 B)False

Question 12

Employers do not pay payroll taxes on payments made to independent contractors.

Accepted Answer

A) True 
 B)False

Question 13

Employees are liable for their FICA taxes only until the taxes have been collected from their pay by their employer.

Accepted Answer

A) True 
 B)False

Question 14

If an employee, who works two or more separate jobs, pays OASDI taxes on wages in excess of the taxable wage base, the employee is entitled to a refund of the overpayment.

Accepted Answer

A) True 
 B)False

Question 15

The FICA tax rates for the self-employed are:

Accepted Answer

A) 6.2% (OASDI) and 1.45% (HI). 
B) 12.4% (OASDI) and 1.45% (HI). 
C) 6.2% (OASDI) and 2.9% (HI). 
D) 10.0% (OASDI) and 1.0% (HI). 
E) none of the above. 
A) 6.2% (OASDI) and 1.45% (HI). 
B) 12.4% (OASDI) and 1.45% (HI). 
C) 6.2% (OASDI) and 2.9% (HI). 
D) 10.0% (OASDI) and 1.0% (HI). 
E) none of the above.

Question 16

On Form 941, the employer does not show the date of each tax deposit during the quarter.

Accepted Answer

A) True 
 B)False

Question 17

Form 941 is due on or before the 15th day of the month following the close of the calendar quarter for which the return is made.

Accepted Answer

A) True 
 B)False

Question 18

Dismissal pay is considered taxable wages under FICA.

Accepted Answer

A) True 
 B)False

Question 19

In its definition of employee, FICA clearly distinguishes between classes or grades of employees.

Accepted Answer

A) True 
 B)False

Question 20

In computing their own FICA taxes, employers may exclude the total amount of tips reported to them by their tipped employees.

Accepted Answer

A) True 
 B)False

FICA defines all of the following as wages except:

The Social Security Act does not require self-employed persons to have an account number.

Barr fails to make a timely deposit of FICA taxes and withheld income taxes until five days after the due date.The penalty facing Barr is:

The Social Security Act requires workers to obtain a new account number each time they change jobs.

FICA does not consider the first six months of sick pay as taxable wages.

Employees may use Form 4070 to report the amount of their tips to their employers.

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2016.The latest date on which she may file Form 941 is:

The Federal Insurance Contributions Act levies a tax upon the gross earnings of self-employed persons.

A monthly depositor is one who reported employment taxes of $50,000 or more for the four quarters in the lookback period.

The highest paid executives of a firm are excluded from coverage under the Federal Insurance Contributions Act (FICA).

Under SECA, all of an individual's self-employment income is counted in determining the HI tax.

Employers do not pay payroll taxes on payments made to independent contractors.

Employees are liable for their FICA taxes only until the taxes have been collected from their pay by their employer.

If an employee, who works two or more separate jobs, pays OASDI taxes on wages in excess of the taxable wage base, the employee is entitled to a refund of the overpayment.

The FICA tax rates for the self-employed are:

On Form 941, the employer does not show the date of each tax deposit during the quarter.

Form 941 is due on or before the 15th day of the month following the close of the calendar quarter for which the return is made.

Dismissal pay is considered taxable wages under FICA.

In its definition of employee, FICA clearly distinguishes between classes or grades of employees.

In computing their own FICA taxes, employers may exclude the total amount of tips reported to them by their tipped employees.

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

FICA defines all of the following as wages except:

The Social Security Act does not require self-employed persons to have an account number.

Barr fails to make a timely deposit of FICA taxes and withheld income taxes until five days after the due date.The penalty facing Barr is:

The Social Security Act requires workers to obtain a new account number each time they change jobs.

FICA does not consider the first six months of sick pay as taxable wages.

Employees may use Form 4070 to report the amount of their tips to their employers.

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2016.The latest date on which she may file Form 941 is:

The Federal Insurance Contributions Act levies a tax upon the gross earnings of self-employed persons.

A monthly depositor is one who reported employment taxes of $50,000 or more for the four quarters in the lookback period.

The highest paid executives of a firm are excluded from coverage under the Federal Insurance Contributions Act (FICA).

Under SECA, all of an individual's self-employment income is counted in determining the HI tax.

Employers do not pay payroll taxes on payments made to independent contractors.

Employees are liable for their FICA taxes only until the taxes have been collected from their pay by their employer.

If an employee, who works two or more separate jobs, pays OASDI taxes on wages in excess of the taxable wage base, the employee is entitled to a refund of the overpayment.

The FICA tax rates for the self-employed are:

On Form 941, the employer does not show the date of each tax deposit during the quarter.

Form 941 is due on or before the 15th day of the month following the close of the calendar quarter for which the return is made.

Dismissal pay is considered taxable wages under FICA.

In its definition of employee, FICA clearly distinguishes between classes or grades of employees.

In computing their own FICA taxes, employers may exclude the total amount of tips reported to them by their tipped employees.

The Need for Payroll and Personal Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters