Question 1

OASDI taxes are levied when the wages are earned by, rather than when paid to, employees.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Businesses with $2,500 or less in quarterly tax liabilities can pay the taxes when they file Form 941.

Accepted Answer

A) True 
 B)False

Question 4

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2019.The latest date on which Ashe may file Form 941 is:

Accepted Answer

A)  April 10.
B)  April 30.
C)  May 1.
D)  May 10.
E)  May 15.F) C) and D)
G) A) and D)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

A worker hired by the federal government in 2019 is covered under FICA.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Employees of a state government hired before January 1, 1986, and covered by a public retirement plan, are exempt from FICA coverage.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  value of meals furnished employees for the employer's convenience.
B)  value of meals furnished employees for the employees' convenience.
C)  commissions.
D)  severance pay.
E)  $500 award for productivity improvement suggestion.F) A) and D)
G) All of the above

Question 11

FICA does not consider the first six months of sick pay as taxable wages.

Accepted Answer

A) True 
 B)False

Question 12

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

A)  No deposit is required until Tuesday, August 18.
B)  The taxes must be deposited by the close of the next banking day.
C)  The taxes must be deposited on or before August 31.
D)  The undeposited taxes should be carried over to the end of September.
E)  None of the above.F) A) and E)
G) A) and B)

Question 13

The FICA tax rates for the self-employed are:

Accepted Answer

A)  6.2% OASDI)  and 1.45% HI) .
B)  12.4% OASDI)  and 1.45% HI) .
C)  6.2% OASDI)  and 2.9% HI) .
D)  10.0% OASDI)  and 1.0% HI) .
E)  none of the above.F) B) and D)
G) B) and C)

Question 14

Under SECA, all of an individual's self-employment income is counted in determining the HI tax.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  The employee's taxes are collected by the employer and paid to the IRS along with the employer's taxes.
B)  The employee's taxes are deducted from the employee's wages at the time of payment.
C)  The employee's liability for the FICA taxes continues even after the employer has withheld them.
D)  The amount of tax to be withheld is computed by multiplying the employee's taxable wages by the current tax rate.
E)  The employee is entitled to a refund for overpayment of FICA taxes resulting from having worked for more than one employer.F) D) and E)
G) C) and D)

Question 16

Employees are liable for their FICA taxes only until the taxes have been collected from their pay by their employer.

Accepted Answer

A) True 
 B)False

Question 17

A monthly depositor is one who reported employment taxes of $50,000 or more for the four quarters in the lookback period.

Accepted Answer

A) True 
 B)False

Question 18

Peter, age 17 and employed by his family-owned corporation, is covered under FICA.

Accepted Answer

A) True 
 B)False

Question 19

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

A) True 
 B)False

Question 20

The Social Security Act requires workers to obtain a new account number each time they change jobs.

Accepted Answer

A) True 
 B)False

Exam 3: Social Security Taxes

The Social Security Act requires workers to obtain a new account number each time they change jobs.

Correct AnswerverifiedShow Answer

Under SECA, all of an individual's self-employment income is counted in determining the HI tax.

Correct AnswerverifiedShow Answer

OASDI taxes are levied when the wages are earned by, rather than when paid to, employees.

Correct AnswerverifiedShow Answer

FICA does not consider the first six months of sick pay as taxable wages.

Correct AnswerverifiedShow Answer

Peter, age 17 and employed by his family-owned corporation, is covered under FICA.

Correct AnswerverifiedShow Answer

Employees of a state government hired before January 1, 1986, and covered by a public retirement plan, are exempt from FICA coverage.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A monthly depositor is one who reported employment taxes of $50,000 or more for the four quarters in the lookback period.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

The FICA tax rates for the self-employed are:

Correct AnswerverifiedShow Answer

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--?

Correct AnswerverifiedShow Answer

Businesses with $2,500 or less in quarterly tax liabilities can pay the taxes when they file Form 941.

Correct AnswerverifiedShow Answer

Employees are liable for their FICA taxes only until the taxes have been collected from their pay by their employer.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A worker hired by the federal government in 2019 is covered under FICA.

Correct AnswerverifiedShow Answer

Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2019.The latest date on which Ashe may file Form 941 is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified