Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

Instruction 3-1
  
-Refer to Instruction 3-1.Crow earned $585.15 during the week ended March 1,20--.Prior to payday,Crow had cumulative gross earnings of $4,733.20.
a)The amount of OASDI taxes to withhold from Crow's pay is __________.
b)The amount of HI taxes to withhold from Crow's pay is __________.

Accepted Answer

The answer of Instruction 3-1
  
-Refer to Instruction 3-1.Crow...

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

Accepted Answer

A) True 
 B)False

Question 6

Instruction 3-1
  
-Refer to Instruction 3-1.Dee is paid $1,345 on November 8,20--.Dee had cumulative gross earnings,including overtime pay,of $117,200 prior to this pay.
a)The amount of OASDI taxes to withhold from Dee's pay is __________.
b)The amount of HI taxes to withhold from Dee's pay is __________.

Accepted Answer

The answer of Instruction 3-1
  
-Refer to Instruction 3-1.Dee...

Question 7

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 8

Ashe,an employer,has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2017.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 9

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 10

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 11

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 12

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 13

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 14

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 15

Instruction 3-1
  
-Refer to Instruction 3-1.Eager,a tipped employee,reported to his employer that he had received $320 in tips during March.On the next payday,April 1,he was paid his regular salary of $400.
a)The amount of OASDI taxes to withhold from Eager's pay is __________.
b)The amount of HI taxes to withhold from Eager's pay is __________.

Accepted Answer

The answer of Instruction 3-1
  
-Refer to Instruction 3-1.Eager,a...

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

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

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

Instruction 3-1 -Refer to Instruction 3-1.Crow earned $585.15 during the week ended March 1,20--.Prior to payday,Crow had cumulative gross earnings of $4,733.20. a)The amount of OASDI taxes to withhold from Crow's pay is . b)The amount of HI taxes to withhold from Crow's pay is .

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

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

Instruction 3-1 -Refer to Instruction 3-1.Dee is paid $1,345 on November 8,20--.Dee had cumulative gross earnings,including overtime pay,of $117,200 prior to this pay. a)The amount of OASDI taxes to withhold from Dee's pay is . b)The amount of HI taxes to withhold from Dee's pay is .

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

Ashe,an employer,has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2017.The latest date on which Ashe may file Form 941 is:

FICA defines all of the following as employees except:

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

The taxes imposed under the Social Security Act consist of:

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

FICA defines all of the following as wages except:

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

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

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.

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

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

The Need for Payroll and Personal Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters

Exam 3: Social Security Taxes

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

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

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

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

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

Ashe,an employer,has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2017.The latest date on which Ashe may file Form 941 is:

FICA defines all of the following as employees except:

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

The taxes imposed under the Social Security Act consist of:

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

FICA defines all of the following as wages except:

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

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

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.

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

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

The Need for Payroll and Personal Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters