Posted: April 21st, 2016
1. Each of the following items is accurately defined under FICA as taxable wages except:
A) value of meals furnished employees for the employer s convenience.
B) value of meals furnished employees for the employees convenience.
D) dismissal pay.
E) $500 award for productivity improvement suggestion.
2. Which of the following payments are not taxable for FICA?
A) Back pay awards.
B) Wage supplements to cover difference between employees salaries and their military pay.
C) Dismissal pay.
D) Difference between employees regular wages and the amount received for jury duty.
E) Retroactive wage increase.
3. Which of the following statements does not describe an employee s FICA taxes and withholdings?
A) Employee s taxes are collected by the employer and paid to the IRS along with the employer s taxes.
B) Employee s taxes are deducted from the employee s wages at the time of payment.
C) Employee s liability for the FICA taxes continues even after the employer has withheld them.
D) Amount of tax to be withheld is computed by multiplying the employee s taxable wages by the current tax rate.
E) Employee is entitled to a refund for overpayment of FICA taxes resulting from having worked for more than one employer.
4. The FICA tax rates for the self employeds are:
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.
5. To be designated a semiweekly depositor, how much in employment taxes would an employer have reported for the four quarters in the lookback period?
A) More than $50,000.
B) More than $100,000.
C) Less than $50,000.
D) More than $2,500.
E) None of the above.
6. 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 15?
A) No deposit is required until Tuesday, August 19.
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.
Which application of the lo
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