Question 1

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

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

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

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 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

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) severance 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) severance pay. 
E) $500 award for productivity improvement suggestion.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2019.The latest date on which Ashe may file Form 941 is:

Accepted Answer

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

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 14, 20--?

Accepted Answer

A) No deposit is required until Tuesday, August 18. 
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 18. 
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 17

A worker hired by the federal government in 2019 is covered under FICA.

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

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 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

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

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

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

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

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.

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

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

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

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

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

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

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

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2019.The latest date on which Ashe may file Form 941 is:

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

The FICA tax rates for the self-employed are:

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 14, 20--?

A worker hired by the federal government in 2019 is covered under FICA.

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

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

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

Filters

Exam 3: Social Security Taxes

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

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

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

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

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.

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

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

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

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

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

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

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

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2019.The latest date on which Ashe may file Form 941 is:

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

The FICA tax rates for the self-employed are:

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 14, 20--?

A worker hired by the federal government in 2019 is covered under FICA.

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

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

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

Filters