Payroll Exam 2

Front 1

Employers do not pay payroll taxes on payments made to independent contractors.

T/F

Back 1

True

Front 2

FICA defines wages as including the cash value of meals provided for the convenience of the employees.

T/F

Back 2

True

Front 3

The Federal Insurance Contribution Act levies a tax upon the gross earnings of self-employed persons.

Back 3

False

net earnings, not gross earnings

Front 4

FICA includes partnerships in its definition of employer.

Back 4

True

Front 5

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

Back 5

False

Front 6

Employers do not pay payroll taxes on payments made to independent contractors.

Back 6

True

Front 7

Under FICA only, cash tips of more than $100 in a month are defined as taxable wages.

Back 7

False

more than $20

Front 8

In computing their own FICA taxes, employers may exclude the total amount of tips reported to them by their tipped employees.

Back 8

False

they match it

Front 9

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

Back 9

True

Front 10

The FICA Tax rates and taxable wage bases are exactly the same for employees and employers.

Back 10

True

Front 11

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

Back 11

false

on payday

Front 12

If an employee who works two or more seperate jobs, pays OASDI taxes on wages in excess of the taxable wage base, the employee is entitled to a refund of the overpayment.

Back 12

True

Front 13

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

Back 13

False

Only net income

Front 14

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

Back 14

True

Front 15

The Social Security Act does not require self-employed persons to have an account number.

Back 15

False

Front 16

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

Back 16

False

Front 17

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

Back 17

False

Front 18

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

Back 18

False

Front 19

The employees of a semiweekly depositor are paid every Tuesday. The accumulated payroll taxes must be deposited on or before the following Friday.

Back 19

True

Front 20

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

Back 20

False