quiz 4 Financial Accouting II
The taxes imposed under the Social Security Act consist of:A)ÿtwo taxes on employers.B)ÿtwo taxes on employees.C)ÿOASDI and HI taxes.D)ÿtaxes on the net earnings of the self-employed.E)ÿall of the above.2.FICA defines all of the following as employees except:A)ÿvice presidents.B)ÿpartners.C)ÿsuperintendents.D)ÿfull-time life insurance salespersons.E)ÿpayroll managers.3.FICA excludes from coverage all of the following kinds of employment except:A)ÿdomestic service performed in a college sorority by a student.B)ÿservice performed by a 16-year-old child in the employ of the mother.C)ÿbaby sitting service performed by a 35-year-old person who receives $40 in cash during the calendar quarter.D)ÿfederal government secretaries hired in 1990.E)ÿservices performed by a railroad worker for an employer covered by the Railroad Retirement Tax Act.4.FICA defines all of the following as wages except:A)ÿyear-end bonuses.B)ÿstandby payments.C)ÿtotal cash tips of $15 received by a tipped employee in May.D)ÿemployees’ social security taxes paid for by the employer.E)ÿfirst six months of sick pay.5.Each of the following items is accurately defined under FICA as taxable wages except:A)ÿvalue of meals furnished employees for the employer’s convenience.B)ÿvalue of meals furnished employees for the employees’ convenience.C)ÿcommissions.D)ÿdismissal pay.E)ÿ$500 award for productivity improvement suggestion.6.Which of the following payments are not taxable for FICA?A)ÿBack-pay awards.B)ÿWage supplements to cover difference between employees salaries and their military pay.C)ÿDismissal pay.D)ÿDifference between employees? regular wages and the amount received for jury duty.E)ÿRetroactive wage increase.7.The OASDI taxable wage base is correctly defined as:A)ÿall amounts earned by an employee during a calendar year.B)ÿthe maximum amount of wages during a calendar year that is subject to the OASDI tax.C)ÿall amounts paid an employee during a calendar year.D)ÿall amounts either earned by, or paid to, an employee during a calendar year.E)ÿnone of the above.8.Which of the following statements does not describe an employee’s FICA taxes and withholdings?A)ÿEmployee’s taxes are collected by the employer and paid to the IRS along with the employer’s taxes.B)ÿEmployee’s taxes are deducted from the employee’s wages at the time of payment.C)ÿEmployee’s liability for the FICA taxes continues even after the employer has withheld them.D)ÿAmount of tax to be withheld is computed by multiplying the employee’s taxable wages by the current tax rate.E)ÿEmployee is entitled to a refund for overpayment of FICA taxes resulting from having worked for more than one employer.9.The FICA tax rates for the self-employeds are:A)ÿ6.2% (OASDI) and 1.45% (HI).B)ÿ12.4% (OASDI) and 1.45% (HI).C)ÿ6.2% (OASDI) and 2.9% (HI).D)ÿ10.0% (OASDI) and 1.0% (HI).E)ÿnone of the above.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?A)ÿNo deposit is required.B)ÿThe undeposited taxes should be carried over to the end of November.C)ÿThe taxes must be deposited on or before November 15.D)ÿThe taxes must be deposited on or before the next banking day.E)ÿNone of the above.11.Which of the following deposit requirements pertains to a semiweekly depositor who has accumulated employment taxes of $17,500 on payday, Saturday, May 15?A)ÿNo deposit is required until May 17, the next banking day.B)ÿThe undeposited taxes should be carried over to the next payday on May 22.C)ÿThe taxes must be deposited on or before Tuesday, May 18.D)ÿThe taxes must be deposited on or before Friday, May 21.E)ÿNone of the above.12.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)ÿMore than $50,000.B)ÿMore than $100,000.C)ÿLess than $50,000.D)ÿMore than $2,500.E)ÿNone of the above.13.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)ÿNo deposit is required until Tuesday, August 19.B)ÿThe taxes must be deposited by the close of the next banking day.C)ÿThe taxes must be deposited on or before August 31.D)ÿThe undeposited taxes should be carried over to the end of September.E)ÿNone of the above.14.Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the third quarter. The last day of October is Sunday. The latest date on which Ashe may file Form 941 is:A)ÿOctober 10.B)ÿOctober 31.C)ÿNovember 1.D)ÿNovember 10.E)ÿNovember 15.15.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:A)ÿ2% of the undeposited taxes.B)ÿ5% of the undeposited taxes.C)ÿ10% of the undeposited taxes.D)ÿ25% of the undeposited taxes.E)ÿnone of the above.