Question 1

A worker hired by the federal government in 2016 is covered under FICA.

Accepted Answer

A) True 
 B)False

Question 2

Payments made to a worker's spouse for hospital expenses in connection with an accident disability are not considered wages under FICA.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Monthly depositors are required to deposit their taxes by the 15th day of the following month.

Accepted Answer

A) True 
 B)False

Question 6

An employer's social security and withheld income taxes for the quarter are less than $2,500.The employer must deposit the taxes at its bank at the time of filing the fourth quarter Form 941.

Accepted Answer

A) True 
 B)False

Question 7

The requirements for depositing FICA taxes and income taxes withheld from nonagricultural employees' wages vary according to the amount of such taxes reported during a "lookback period."

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 10

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

Accepted Answer

A)  domestic service performed in a college sorority by a student.
B)  service performed by a 16-year-old child in the employ of the mother.
C)  babysitting service performed by a 35-year-old person who receives $40 in cash during the calendar quarter.
D)  federal government secretaries hired in 1990.
E)  services performed by a railroad worker for an employer covered by the Railroad Retirement Tax Act.F) C) and D)
G) A) and C)

Question 11

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) C) and D)
G) B) and D)

Question 12

State and local government employers must make their tax deposits according to a different schedule than private employers.

Accepted Answer

A) True 
 B)False

Question 13

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

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.F) None of the above
G) A) and C)

Question 14

Noncash items given to household employees by their employers are subject to FICA tax.

Accepted Answer

A) True 
 B)False

Question 15

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

A) True 
 B)False

Question 16

Employer payments made directly to employees in lieu of health insurance coverage are taxable wages.

Accepted Answer

A) True 
 B)False

Question 17

All employers of one or more persons must file an application for an identification number.

Accepted Answer

A) True 
 B)False

Question 18

Nonagricultural employers who withhold income taxes and are liable for social security taxes must file a monthly tax and information return.

Accepted Answer

A) True 
 B)False

Question 19

FICA defines all of the following as employees except:

Accepted Answer

A)  vice presidents.
B)  partners.
C)  superintendents.
D)  full-time life insurance salespersons.
E)  payroll managers.F) D) and E)
G) C) and D)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 3: Social Security Taxes

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

Correct AnswerverifiedShow Answer

Payments made to a worker's spouse for hospital expenses in connection with an accident disability are not considered wages under FICA.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

FICA defines all of the following as employees except:

Correct AnswerverifiedShow Answer

Employer payments made directly to employees in lieu of health insurance coverage are taxable wages.

Correct AnswerverifiedShow Answer

All employers of one or more persons must file an application for an identification number.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Noncash items given to household employees by their employers are subject to FICA tax.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

An employer's social security and withheld income taxes for the quarter are less than $2,500.The employer must deposit the taxes at its bank at the time of filing the fourth quarter Form 941.

Correct AnswerverifiedShow Answer

The requirements for depositing FICA taxes and income taxes withheld from nonagricultural employees' wages vary according to the amount of such taxes reported during a "lookback period."

Correct AnswerverifiedShow Answer

A worker hired by the federal government in 2016 is covered under FICA.

Correct AnswerverifiedShow Answer

Nonagricultural employers who withhold income taxes and are liable for social security taxes must file a monthly tax and information return.

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

State and local government employers must make their tax deposits according to a different schedule than private employers.

Correct AnswerverifiedShow Answer

Monthly depositors are required to deposit their taxes by the 15th day of the following month.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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