Question 1

Employer payments made directly to employees in lieu of health insurance coverage are taxable wages.

Accepted Answer

A) True 
 B)False

Question 2

If the accumulated employment taxes during a quarter are less than $2,500, no deposits are required.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Dismissal pay is considered taxable wages under FICA.

Accepted Answer

A) True 
 B)False

Question 5

Payments made to a worker's spouse for hospital expenses in connection with an accident disability are not considered wages under FICA.

Accepted Answer

A) True 
 B)False

Question 6

Peter, age 17 and employed by his family-owned corporation, is covered under FICA.

Accepted Answer

A) True 
 B)False

Question 7

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 15?

Accepted Answer

A)  No deposit is required until Tuesday, August 19. 
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 19. 
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 8

State and local government employers must make their tax deposits according to a different schedule than private employers.

Accepted Answer

A) True 
 B)False

Question 9

The FICA tax rates and taxable wage bases are exactly the same for employees and employers.

Accepted Answer

A) True 
 B)False

Question 10

Self-employed persons include their self-employment taxes in their quarterly payment of estimated federal income taxes.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  No deposit is required until May 19, the next banking day. 
B)  The undeposited taxes should be carried over to the next payday on May 24. 
C)  The taxes must be deposited on or before Tuesday, May 20. 
D)  The taxes must be deposited on or before Friday, May 23. 
E)  None of the above. 
A)  No deposit is required until May 19, the next banking day. 
B)  The undeposited taxes should be carried over to the next payday on May 24. 
C)  The taxes must be deposited on or before Tuesday, May 20. 
D)  The taxes must be deposited on or before Friday, May 23. 
E)  None of the above.

Question 15

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

Question 16

Monthly depositors are required to deposit their taxes by the 15th day of the following month.

Accepted Answer

A) True 
 B)False

Question 17

FICA includes partnerships in its definition of employer.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements does not describe an employee's FICA taxes and withholdings?

Accepted Answer

A)  The employee's taxes are collected by the employer and paid to the IRS along with the employer's taxes. 
B)  The employee's taxes are deducted from the employee's wages at the time of payment. 
C)  The employee's liability for the FICA taxes continues even after the employer has withheld them. 
D)  The amount of tax to be withheld is computed by multiplying the employee's taxable wages by the current tax rate. 
E)  The employee is entitled to a refund for overpayment of FICA taxes resulting from having worked for more than one employer. 
A)  The employee's taxes are collected by the employer and paid to the IRS along with the employer's taxes. 
B)  The employee's taxes are deducted from the employee's wages at the time of payment. 
C)  The employee's liability for the FICA taxes continues even after the employer has withheld them. 
D)  The amount of tax to be withheld is computed by multiplying the employee's taxable wages by the current tax rate. 
E)  The employee is entitled to a refund for overpayment of FICA taxes resulting from having worked for more than one employer.

Question 19

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2014. The latest date on which she may file Form 941 is:

Accepted Answer

A)  April 10. 
B)  April 30. 
C)  May 1. 
D)  May 12. 
E)  May 15. 
A)  April 10. 
B)  April 30. 
C)  May 1. 
D)  May 12. 
E)  May 15.

Question 20

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

Employer payments made directly to employees in lieu of health insurance coverage are taxable wages.

If the accumulated employment taxes during a quarter are less than $2,500, no deposits are required.

The FICA tax rates for the self-employed are:

Dismissal pay is considered taxable wages under FICA.

Payments made to a worker's spouse for hospital expenses in connection with an accident disability are not considered wages under FICA.

Peter, age 17 and employed by his family-owned corporation, is covered under 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 15?

State and local government employers must make their tax deposits according to a different schedule than private employers.

The FICA tax rates and taxable wage bases are exactly the same for employees and employers.

Self-employed persons include their self-employment taxes in their quarterly payment of estimated federal income taxes.

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

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

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

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

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

Monthly depositors are required to deposit their taxes by the 15th day of the following month.

FICA includes partnerships in its definition of employer.

Which of the following statements does not describe an employee's FICA taxes and withholdings?

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2014. The latest date on which she may file Form 941 is:

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

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

Employer payments made directly to employees in lieu of health insurance coverage are taxable wages.

If the accumulated employment taxes during a quarter are less than $2,500, no deposits are required.

The FICA tax rates for the self-employed are:

Dismissal pay is considered taxable wages under FICA.

Payments made to a worker's spouse for hospital expenses in connection with an accident disability are not considered wages under FICA.

Peter, age 17 and employed by his family-owned corporation, is covered under 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 15?

State and local government employers must make their tax deposits according to a different schedule than private employers.

The FICA tax rates and taxable wage bases are exactly the same for employees and employers.

Self-employed persons include their self-employment taxes in their quarterly payment of estimated federal income taxes.

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

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

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

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

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

Monthly depositors are required to deposit their taxes by the 15th day of the following month.

FICA includes partnerships in its definition of employer.

Which of the following statements does not describe an employee's FICA taxes and withholdings?

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2014. The latest date on which she may file Form 941 is:

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

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll Transactions

Filters