Exam 3: Social Security Taxes

An employer's social security and withheld income taxes for the quarter are less than $2,500.The employer must deposit the taxes at its bank at the time of filing the fourth quarter Form 941.

Refer to Instruction 3-1.Dee is paid $2,345 on November 8,20--.Dee had cumulative gross earnings,including overtime pay,of $125,900 prior to this pay. a) The amount of OASDI taxes to wi thhold from Dee's pay is______ b) The amount of HI taxes to withhold from Dee's pay is________

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: 1.Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimals places (round the hourly rate to 2 decimal places Before multiplying by one and one-half to determine the overtime rate). 2)If the third decimal place is 5 or more,round to the next higher cent. 3)If the third decimal place is less than 5,drop the third decimal place. Also,use the minimum hourly wage of $7.25 in solving these problems and all that follow.

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.

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--?

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.

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

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

Severance pay is considered taxable wages under FICA.

Lidge Company of Texas (TX)is classified as a monthly depositor and pays its employees monthly.The following payroll information is for the second quarter of 20--. ​ ​ The number of employees on June 12,20-- was 11. ​ ​ a.Complete the following portion of Form 941. ​ Source: Internal Revenue Service ​ b.Complete the following portion of Form 941. Source: Internal Revenue Service ​ c.Complete Part 2 of Form 941. Source: Internal Revenue Service ​ d.What are the payment due dates of each of the monthly liabilities assuming all deposits were made on time,and the due date of the filing of Form 941 (year 20--)?

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

Which of the following deposit requirements pertains to a monthly depositor who has accumulated employment taxes of $2,900 at the end of October?

Which of the following payments are not taxable for FICA?

Ashe,an employer,has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2018.The latest date on which Ashe may file Form 941 is:

Employers file Form 941 with the IRS center of the region in which the employer's principal place of business is located.

FICA includes partnerships in its definition of employer.

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.

Exempt educational assistance includes payments for tools that employees keep after they complete a course of instruction.

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

FICA defines wages as including the cash value of meals provided for the convenience of the employees.