Question 1

Which of the following payments are not taxable for FICA?

Accepted Answer

Wage supplements to cover difference between employees' salaries and their military pay are not taxable for FICA.

Question 2

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

Accepted Answer

The answer of Each of the following items is accurately...

Question 3

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

Form 941 is due by the last day of the month following the end of the quarter. For the first quarter of 2017 (January-March), the last day of the month is March 31, and the due date is April 30. However, since April 30 falls on a Sunday, the deadline is extended to the following business day, May 1. As Ashe has made timely deposits, they are eligible for an additional 10-day grace period, making the latest possible filing date May 10.

Question 4

FICA defines all of the following as wages except:

Accepted Answer

Total cash tips of $15 received by a tipped employee in May do not meet the FICA requirement for reporting tips as wages, as the minimum amount that must be reported is $20 in a month.

Question 5

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

This is correct according to IRS regulations. The penalty percentage varies depending on how late the return is filed.

Question 6

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.

Accepted Answer

The answer of Form 941 is due on or before...

Question 7

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 earned...

Question 8

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

Accepted Answer

Form 944 is specifically designed for small employers whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less, allowing them to file annually instead of quarterly. Not all new employers qualify to use Form 944; it depends on their tax liability.

Question 9

The OASDI taxable wage base is correctly defined as:

Accepted Answer

The OASDI taxable wage base is the maximum amount of wages during a calendar year that is subject to the OASDI tax. This means that any income earned above this wage base is not subject to the tax. Option A, C, and D are incorrect as they either include all amounts earned or paid, while only a portion of wages is subject to the tax. Option E is also incorrect as it does not provide a correct definition of the OASDI taxable wage base.

Question 10

The taxes imposed under the Social Security Act consist of:

Accepted Answer

The taxes imposed under the Social Security Act consist of two taxes on employers (one for OASDI, one for HI), two taxes on employees (also one for OASDI and one for HI), and taxes on the net earnings of the self-employed (which include both OASDI and HI taxes). Therefore, all options mentioned in the question are correct, making choice E the best option.

Question 11

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

Accepted Answer

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

Question 12

FICA defines all of the following as employees except:

Accepted Answer

FICA does not consider partners as employees, as partners are owners of a company and share in its profits and losses.

Question 13

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

Accepted Answer

FICA covers almost all kinds of employment, but federal government employees hired after 1983 are covered by a separate retirement system, so they are excluded from FICA coverage.

Question 14

Which of the following statements does not describe an employee's FICA taxes and withholdings?

Accepted Answer

C) The employee's liability for the FICA taxes ends once the employer has withheld them from the employee's wages, making this statement incorrect.

Question 15

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

Accepted Answer

Employers who fail to file employment tax returns can be subject to civil penalties, such as fines, and criminal penalties, such as imprisonment.

Question 16

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

Accepted Answer

Monthly depositors must deposit accumulated employment taxes by the 15th day of the following month. In this case, the employment taxes were accumulated by the end of October, so they must be deposited on or before November 15th.

Question 17

The FICA tax rates for the self-employed are:

Accepted Answer

The answer of The FICA tax rates for the self-employed...

Question 18

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--?

Accepted Answer

According to the deposit rules for employers, if the total FICA taxes and income taxes withheld from employees and employer FICA taxes during a calendar month is $100,000 or more, the deposit must be made by the close of the next banking day. Therefore, as the total tax liability is $125,000 at the end of payday on Friday, August 14, a deposit must be made by the close of the next banking day. Option A is incorrect because the deposit requirement is based on the total tax liability, not the payday. Option C is incorrect because August 31 is beyond the close of the next banking day. Option D is incorrect because undeposited taxes cannot be carried over to the end of September, and must be deposited by the due date. Option E is incorrect because there is a deposit requirement based on the total tax liability, and the answer cannot be none of the above.

Question 19

To be designated a semiweekly depositor,how much in employment taxes would an employer have reported for the four quarters in the lookback period?

Accepted Answer

The answer of To be designated a semiweekly depositor,how much...

Question 20

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--?

Accepted Answer

The answer of Which of the following deposit requirements pertains...

Quiz 3: Social Security Taxes

Which of the following payments are not taxable for FICA?

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

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 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.

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.

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 .

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

The OASDI taxable wage base is correctly defined as:

The taxes imposed under the Social Security Act consist of:

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

FICA defines all of the following as employees except:

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

Which of the following statements does not describe an employee's FICA taxes and withholdings?

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

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

The FICA tax rates for the self-employed are:

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--?

To be designated a semiweekly depositor,how much in employment taxes would an employer have reported for the four quarters in the lookback period?

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--?