Exam 3: Social Security Taxes

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

Severance pay is considered taxable wages under FICA.

A worker hired by the federal government in 2017 is covered under FICA.

Instruction 3-1 -Refer to Instruction 3-1.On August 1,Huff (part-time waitress)reported on Form 4070 the cash tips of $158.50 that she received in July.During August,Huff was paid wages of $550 by her employer.Determine: OASDI HI a)The amount of social security taxes that the employer should withhold from Huff's wages during August: __________ __________ b)The amount of the employer's social security taxes on Huff's wages and tips during August: __________ __________

FICA includes partnerships in its definition of employer.

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

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

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.

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

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--?

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.

Which of the following payments are not taxable for FICA?

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--?

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

A monthly depositor is one who reported employment taxes of $50,000 or more for the four quarters in the lookback period.

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

Instruction 3-1 -Refer to Instruction 3-1.On the last weekly pay of the first quarter,Lorenz is paid her current pay of $90 per day for four days worked and one day sick pay (total-$450).She is also paid her first quarter commission of $1,200 in this pay.How much will be deducted for: a)OASDI tax __________ b)HI tax __________

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

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

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