Question 1

If the last day for filing Form 941 falls on Saturday, the return may be filed on the next business day.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Once the initial Form 941 is filed by a company, the company does not need to file Form 941 for a quarter in which there are no taxes to report.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Part-time employees pay a FICA tax at half the tax rate of full-time employees.

Accepted Answer

A) True 
 B)False

Question 6

Once a person reaches the age of 65, social security taxes are not taken out of his or her paycheck.

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 20--.  The latest date on which Ashe may file Form 941 (without incurring penalty) 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 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 15

If an employee defers compensation into a 401(k) plan, the deferral (payroll deduction) is still subject to social security taxes.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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.

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

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 20

Employer contributions for retirement plan payments for employees are defined as wages and are thus subject to FICA taxes.

Accepted Answer

A) True 
 B)False

If the last day for filing Form 941 falls on Saturday, the return may be filed on the next business day.

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

Once the initial Form 941 is filed by a company, the company does not need to file Form 941 for a quarter in which there are no taxes to report.

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

Part-time employees pay a FICA tax at half the tax rate of full-time employees.

Once a person reaches the age of 65, social security taxes are not taken out of his or her paycheck.

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."

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

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

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 20--. The latest date on which Ashe may file Form 941 (without incurring penalty) is:

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

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

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

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

If an employee defers compensation into a 401(k) plan, the deferral (payroll deduction) is still subject to social security taxes.

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

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

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

Employer contributions for retirement plan payments for employees are defined as wages and are thus subject to FICA taxes.

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

If the last day for filing Form 941 falls on Saturday, the return may be filed on the next business day.

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

Once the initial Form 941 is filed by a company, the company does not need to file Form 941 for a quarter in which there are no taxes to report.

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

Part-time employees pay a FICA tax at half the tax rate of full-time employees.

Once a person reaches the age of 65, social security taxes are not taken out of his or her paycheck.

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."

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

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

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 20--. The latest date on which Ashe may file Form 941 (without incurring penalty) is:

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

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

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

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

If an employee defers compensation into a 401(k) plan, the deferral (payroll deduction) is still subject to social security taxes.

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

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

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

Employer contributions for retirement plan payments for employees are defined as wages and are thus subject to FICA taxes.

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters