Question 1

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. A

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

FICA includes partnerships in its definition of employer.

Accepted Answer

A) True 
 B)False  True

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

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) Severance 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) Severance pay. 
D) Difference between employees' regular wages and the amount received for jury duty. 
E) Retroactive wage increase.

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 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

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 17

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 18

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 19

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 20

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.

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:

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

FICA includes partnerships in its definition of employer.

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

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

The taxes imposed under the Social Security Act consist of:

Which of the following payments are not taxable for FICA?

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.

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

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

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:

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

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

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

FICA defines all of the following as wages except:

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

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."

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

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--?

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters

Exam 3: Social Security Taxes

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:

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

FICA includes partnerships in its definition of employer.

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

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

The taxes imposed under the Social Security Act consist of:

Which of the following payments are not taxable for FICA?

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.

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

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

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:

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

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

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

FICA defines all of the following as wages except:

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

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."

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

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--?

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters