Question 1

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 are required to deposit employment taxes by the 15th day of the following month. In this case, since the employment taxes have accumulated to $2,900 by the end of October, they must be deposited on or before November 15. Therefore, Option C is the correct choice. Option A is incorrect because a deposit is required for accumulated employment taxes. Option B is incorrect because carrying over undeposited taxes is not allowed for monthly depositors. Option D is incorrect because the 15th of the following month is the due date for monthly depositors. Option E is incorrect because one of the options is correct.

Question 2

The OASDI taxable wage base is correctly defined as:

Accepted Answer

The OASDI taxable wage base is the maximum amount of wages subject to the OASDI tax, which is adjusted annually. Therefore, choice B is the correct definition. Choices A, C, and D are too broad or include payments that are not subject to the tax. Choice E is not a valid answer.

Question 3

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

Accepted Answer

FICA applies to most forms of employment, but one of the exceptions is federal government employees hired before 1984. Therefore, federal government secretaries hired in 1990 would be covered by FICA. The other options given are all examples of employment that are typically exempt from FICA.

Question 4

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 5

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 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

Form 941 is due on the last day of the month following the end of the calendar quarter, not the 15th day.

Question 7

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 face civil penalties such as late filing fees and interest charges, as well as criminal penalties including fines and potential imprisonment.

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

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

An employer is designated as a semiweekly depositor if they reported more than $50,000 in employment taxes during the four quarters in the lookback period.

Question 10

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...

Question 11

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. The penalty for failure to file an employment tax return on time is generally 5% of the unpaid tax amount for each month or part of a month that the return is late, up to a maximum of 25%.

Question 12

The FICA tax rates for the self-employed are:

Accepted Answer

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

Question 13

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 and 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 are equivalent to both the employee and employer taxes combined). Therefore, all of the above choices are correct.

Question 14

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 20--.  The latest date on which Ashe may file Form 941 (without incurring penalty) is:

Accepted Answer

Employers must file Form 941 by the last day of the month following the end of each quarter. Since the first quarter ends on March 31, the latest date to file Form 941 without penalty is May 10.

Question 15

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:

Accepted Answer

The penalty for failing to make a timely deposit of FICA taxes and withheld income taxes is 2% of the undeposited taxes for the first month or part of a month that the taxes are late.

Question 16

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 17

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 18

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 19

FICA defines all of the following as employees except :

Accepted Answer

FICA defines partners as self-employed individuals, not employees.

Question 20

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 IRS rules, if the total amount of employer FICA taxes and withheld employee FICA taxes and income taxes is $100,000 or more, the deposit must be made by the close of the next business day. Therefore, the taxes in this scenario must be deposited by the close of the next banking day, which would be Monday, August 17. Option A, C, D are incorrect because they do not align with IRS rules.

Quiz 3: Social Security Taxes

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 OASDI taxable wage base is correctly defined as:

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

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

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

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.

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

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

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--?

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.

The FICA tax rates for the self-employed are:

The taxes imposed under the Social Security Act consist of:

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 20--. The latest date on which Ashe may file Form 941 (without incurring penalty) 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:

Which of the following payments are not taxable for FICA?

FICA defines all of the following as wages except :

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 :

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--?