Exam 3: Social Security Taxes

Refer to Instruction 3-1.Fess receives wages totaling $74,500 and has net earnings from self-employment amounting to $61,300.In determining her taxable self-employment income for the OASDI tax,how much of her net self-employment earnings must Fess count?

FICA defines all of the following as wages except:

A worker hired by the federal government in 2018 is covered under FICA.

Refer to Instruction 3-1.Ralston is the sole proprietor of Cut & Curl.During the year,his net earnings were $79,700.What are his self-employment taxes (OASDI and HI)on these earnings?

Refer to Instruction 3-1.Jax Company's (a monthly depositor)tax liability (amount withheld from employees' wages for federal income tax and FICA tax plus the company's portion of the FICA tax)for July was $1,210.No deposit was made by the company until August 24,20--.Determine: a) The date by which the deposit should have been made b) The penalty for failure to make timely deposit c) The penalty for failure to fully pay tax when due d) The interest on taxes due and unp aid (assume a 4\% interest rate) ​

On Schedule B of Form 941,the employer does not show the date of each tax deposit during the quarter.

Refer to Instruction 3-1.Beginning with the first pay of the year,Carson will make $2,700 each week.In which numbered pay of the year will Carson hit the OASDI taxable limit?

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

If the accumulated employment taxes during a quarter are less than $2,500,no deposits are required.

The OASDI taxable wage base is correctly defined as:

Refer to Instruction 3-1.During 20--,Garr was paid a weekly salary of $2,540.The amount of FICA to be withheld from the following payments is: a) b) c)

Form 944 (annual form)can be used by all new employers instead of Form 941.