Question 1

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. A

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

If an employer fails to file an employment tax return on the due date, a penalty based on a certain percentage of the amount of tax required to be reported may be added to the tax.

Accepted Answer

A) True 
 B)False  True

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 8

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

Question 9

FICA excludes from coverage all of the following kinds of employment except:

Accepted Answer

A)  domestic service performed in a college sorority by a student. 
B)  service performed by a 16-year-old child in the employ of the mother. 
C)  babysitting service performed by a 35-year-old person who receives $40 in cash during the calendar quarter. 
D)  federal government secretaries hired in 1990. 
E)  services performed by a railroad worker for an employer covered by the Railroad Retirement Tax Act. 
A)  domestic service performed in a college sorority by a student. 
B)  service performed by a 16-year-old child in the employ of the mother. 
C)  babysitting service performed by a 35-year-old person who receives $40 in cash during the calendar quarter. 
D)  federal government secretaries hired in 1990. 
E)  services performed by a railroad worker for an employer covered by the Railroad Retirement Tax Act.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

FICA defines all of the following as employees except:

Accepted Answer

A)  vice presidents. 
B)  partners. 
C)  superintendents. 
D)  full-time life insurance salespersons. 
E)  payroll managers. 
A)  vice presidents. 
B)  partners. 
C)  superintendents. 
D)  full-time life insurance salespersons. 
E)  payroll managers.

Question 14

All employers of one or more persons must file an application for an identification number.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Employees of a state government hired before January 1, 1986, and covered by a public retirement plan, are exempt from FICA coverage.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Noncash items given to household employees by their employers are subject to FICA tax.

Accepted Answer

A) True 
 B)False

Question 20

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.

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

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

If an employer fails to file an employment tax return on the due date, a penalty based on a certain percentage of the amount of tax required to be reported may be added to the tax.

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.

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

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.

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:

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

FICA excludes from coverage all of the following kinds of employment except:

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

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

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

FICA defines all of the following as employees except:

All employers of one or more persons must file an application for an identification number.

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

Employees of a state government hired before January 1, 1986, and covered by a public retirement plan, are exempt from FICA coverage.

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

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

Noncash items given to household employees by their employers are subject to FICA tax.

The taxes imposed under the Social Security Act consist of:

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll Transactions

Filters

Exam 3: Social Security Taxes

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

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

If an employer fails to file an employment tax return on the due date, a penalty based on a certain percentage of the amount of tax required to be reported may be added to the tax.

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.

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

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.

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:

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

FICA excludes from coverage all of the following kinds of employment except:

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

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

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

FICA defines all of the following as employees except:

All employers of one or more persons must file an application for an identification number.

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

Employees of a state government hired before January 1, 1986, and covered by a public retirement plan, are exempt from FICA coverage.

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

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

Noncash items given to household employees by their employers are subject to FICA tax.

The taxes imposed under the Social Security Act consist of:

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll Transactions

Filters