Question 1

The taxes imposed under the Social Security Act consist of:

Accepted Answer

The taxes imposed under the Social Security Act include two taxes on employers (one for OASDI and one for HI), two taxes on employees (also one for OASDI and one for HI), OASDI and HI taxes, and taxes on the net earnings of the self-employed. Therefore, all of the above options are correct.

Question 2

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.

Accepted Answer

The penalty for failing to make a timely deposit of FICA taxes and withheld income taxes is 2% of the undeposited taxes.

Question 3

The FICA tax rates for the self-employed are:

Accepted Answer

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

Question 4

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 5

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 6

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:

Accepted Answer

Employers must file Form 941 quarterly, with a due date of the last day of the month following the end of the quarter. For the first quarter of 2018 (January-March), the due date is April 30th. However, if all taxes were deposited in a timely manner, employers have an additional 10 days to file and may file the form by May 10th.

Question 7

The OASDI taxable wage base is correctly defined as:

Accepted Answer

The OASDI taxable wage base is defined as the maximum amount of wages or self-employment income that is subject to the OASDI tax during a calendar year.

Question 8

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 both civil and criminal penalties. Civil penalties may include fines or interest charges, while criminal penalties may include fines, imprisonment, or both.

Question 9

Which of the following payments are not taxable for FICA?

Accepted Answer

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

Question 10

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

According to the deposit schedule, monthly depositors must deposit employment taxes by the 15th of the following month. Since the employer has accumulated $2,900 in employment taxes at the end of October, they must deposit that amount on or before November 15th. Option A is incorrect as a deposit is required. Option B is incorrect as carrying over taxes to the next month is not an acceptable option for monthly depositors. Option D is incorrect as there is a specific date provided for the deposit. Option E is incorrect as one of the options provided is correct.

Question 11

FICA defines all of the following as employees except:

Accepted Answer

Partners are not considered employees under FICA, as they are not directly employed by the partnership, but rather have an ownership interest in the business.

Question 12

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

The penalty for failure to file an employment tax return on the due date is based on a percentage of the tax required to be reported.

Question 13

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 14

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 15

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 16

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 17

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 18

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 19

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, if the employer has a tax liability of $100,000 or more on any day during a deposit period, the taxes must be deposited by the close of the next banking day. Therefore, in this scenario, since the tax liability is $125,000, the taxes must be deposited by the close of the next banking day. Option A is incorrect because it is only applicable when the tax liability is less than $100,000. Option C is incorrect because it does not consider the tax liability amount. Option D is incorrect because undeposited taxes cannot be carried over to another deposit period. Option E is incorrect because one of the options (Option B) is correct.

Question 20

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.

Quiz 3: Social Security Taxes

The taxes imposed under the Social Security Act consist of:

The FICA tax rates for the self-employed are:

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

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.

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:

The OASDI taxable wage base is correctly defined as:

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

Which of the following payments are not taxable for FICA?

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

FICA defines all of the following as employees 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.

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--?

Each of the following items is accurately defined under FICA as taxable 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 excludes from coverage all of the following kinds of employment except:

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

FICA defines all of the following as wages 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--?

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