Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)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

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

Severance pay is considered taxable wages under FICA.

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

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 10

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 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

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 14

The FICA tax rates and taxable wage bases are exactly the same for the employee and employer when the employee makes $200,000 or less.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

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

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

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

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.

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

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.

Severance pay is considered taxable wages under FICA.

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

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

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

Form 944 annual form) can be used by all new employers instead of 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?

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.

The FICA tax rates and taxable wage bases are exactly the same for the employee and employer when the employee makes $200,000 or less.

FICA defines all of the following as employees except:

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

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

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

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

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 Personnel Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters

Exam 3: Social Security Taxes

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

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

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.

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

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.

Severance pay is considered taxable wages under FICA.

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

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

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

Form 944 annual form) can be used by all new employers instead of 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?

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.

The FICA tax rates and taxable wage bases are exactly the same for the employee and employer when the employee makes $200,000 or less.

FICA defines all of the following as employees except:

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

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

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

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

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 Personnel Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters