Question 1

Employers file Form 941 with the IRS center of the region in which the employer's principal place of business is located.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

Nonagricultural employers who withhold income taxes and are liable for social security taxes must file a monthly tax and information return.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

A worker hired by the federal government in 2014 is covered under FICA.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The requirements for depositing FICA taxes and income taxes withheld from nonagricultural employees' wages vary according to the amount of such taxes reported during a "lookback period."

Accepted Answer

A) True 
 B)False

Question 9

An employer's social security and withheld income taxes for the quarter are less than $2,500. The employer must deposit the taxes at its bank at the time of filing the fourth quarter Form 941.

Accepted Answer

A) True 
 B)False

Question 10

To be designated a semiweekly depositor, how much in employment taxes would an employer have reported for the four quarters in the lookback period?

Accepted Answer

A)  More than $50,000. 
B)  More than $100,000. 
C)  Less than $50,000. 
D)  More than $2,500. 
E)  None of the above. 
A)  More than $50,000. 
B)  More than $100,000. 
C)  Less than $50,000. 
D)  More than $2,500. 
E)  None of the above.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 16

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 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 19

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 20

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

Accepted Answer

A) True 
 B)False

Employers file Form 941 with the IRS center of the region in which the employer's principal place of business is located.

The OASDI taxable wage base is correctly defined as:

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.

Nonagricultural employers who withhold income taxes and are liable for social security taxes must file a monthly tax and information return.

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

A worker hired by the federal government in 2014 is covered under FICA.

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

The requirements for depositing FICA taxes and income taxes withheld from nonagricultural employees' wages vary according to the amount of such taxes reported during a "lookback period."

An employer's social security and withheld income taxes for the quarter are less than $2,500. The employer must deposit the taxes at its bank at the time of filing the fourth quarter Form 941.

To be designated a semiweekly depositor, how much in employment taxes would an employer have reported for the four quarters in the lookback period?

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

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

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

Which of the following payments are not taxable for FICA?

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?

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

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

FICA defines all of the following as wages except:

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

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

Employers file Form 941 with the IRS center of the region in which the employer's principal place of business is located.

The OASDI taxable wage base is correctly defined as:

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.

Nonagricultural employers who withhold income taxes and are liable for social security taxes must file a monthly tax and information return.

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

A worker hired by the federal government in 2014 is covered under FICA.

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

The requirements for depositing FICA taxes and income taxes withheld from nonagricultural employees' wages vary according to the amount of such taxes reported during a "lookback period."

An employer's social security and withheld income taxes for the quarter are less than $2,500. The employer must deposit the taxes at its bank at the time of filing the fourth quarter Form 941.

To be designated a semiweekly depositor, how much in employment taxes would an employer have reported for the four quarters in the lookback period?

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

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

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

Which of the following payments are not taxable for FICA?

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?

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

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

FICA defines all of the following as wages except:

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

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll Transactions

Filters