Question 1

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  True

Question 2

Monthly depositors are required to deposit their taxes by the 15th day of the following month.

Accepted Answer

A) True 
 B)False  True

Question 3

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. B

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

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 6

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 7

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 8

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

Accepted Answer

A) True 
 B)False

Question 9

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__________-

Accepted Answer

The answer of Refer to Instruction 3-1.On the last weekly...

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 19

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 6,he was paid his regular salary of $400. a) The amount of OASDI taxes to wi thhold from Eager's pay is_______
b) The amount of HI taxes to withhold from Eager's pay is___________

Accepted Answer

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

Question 20

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

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

Monthly depositors are required to deposit their taxes by the 15th day of the following month.

FICA defines all of the following as employees except:

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

The taxes imposed under the Social Security Act consist of:

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.

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

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__-

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

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

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.

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

The FICA tax rates for the self-employed are:

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

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

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

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

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

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

Monthly depositors are required to deposit their taxes by the 15th day of the following month.

FICA defines all of the following as employees except:

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

The taxes imposed under the Social Security Act consist of:

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.

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

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

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

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.

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

The FICA tax rates for the self-employed are:

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

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

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

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

The Need for Payroll and Personal Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters