Which of the following statements regarding FICA taxes is true? A. Low income employees are not...
Question:
Which of the following statements regarding FICA taxes is true?
A. Low income employees are not required to pay FICA taxes.
B. An employee who has two different employers during the year may be entitled to a tax credit for overpaid FICA taxes.
C. The wage base limit for Social Security taxes depends on the taxpayer's filing status.
D. The maximum amount of Medicare taxes an employee is required to pay is capped each year but the maximum amount of Social Security taxes is not.
Payroll Taxes:
Payroll taxes are taxes that are taken out of an employees paycheck. There are a variety of different taxes that have to be accounted for. Some are federal income tax, state income tax, and even something called FICA. It is good to read up on the tax laws to make sure your paycheck is never incorrectly calculated.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerWhen reading this question, there is only one option that is true when it comes to FICA taxes. The correct answer is B. When an employee has two...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
What is Payroll Tax? - Definition & Example
from
Chapter 6 / Lesson 18
35K
How does payroll tax work? Learn the payroll tax definition and see the purpose of payroll taxes. See examples of the different types of payroll taxes.
Related to this Question
- Which of the following statements about the FICA tax is not true? (a) The FICA tax is composed of two parts, Social Security and Medicare. (b) Self-employed individuals may elect to pay either FICA taxes or self-employment taxes. (c) FICA taxes are paid b
- Which of the following statements is true about FICA Social Security and Medicare? A. Employers match the employee's deduction for FICA Medicare but pay a higher percentage for FICA Social Security. B. Only employees have this deduction. C. Only employers
- Which of the following statements regarding Social Security tax is false? a. Social Security tax was first levied on employees in 1937. b. All earnings of an employee that exceed the taxable wage base
- All of the following statements regarding FICA taxes are true except: A) The amount of FICA deducted from the employee is credited to a liability account. B) FICA taxes are deducted from the employee. C) An employer must pay FICA taxes equal to the amount
- Identify the statement below that is not true regarding social security tax. A. Both the employee and the employer pay an equal amount of social security tax on the employee's wages. B. The social security tax provides benefits for retirement as well as
- Which of the following is not an employer payroll cost? (a) FICA taxes. (b) Employer contributions to a retirement plan. (c) Federal and state income taxes. (d) Federal and state unemployment taxes.
- Which of the following is correct? a) Social Security tax is employer-paid only. b) Income taxes withheld from employees' paychecks are liabilities of the employer. c) Vacation benefits should be recognized as expenses when employees take a vacation.
- Which of the following is classified as an accrued payroll liability? a. Federal Income Tax Withheld: yes, Employee's Share of F.I.C.A. Taxes: yes b. Federal Income Tax Withheld: yes, Employee's Share of F.I.C.A. Taxes: no c. Federal Income Tax Withheld:
- Which one of the following payroll taxes is not withheld from an employee's wages because it is not levied on the employee? a. Federal income tax. b. FICA tax c. Federal unemployment tax. d. State income tax.
- Which one of the following payroll taxes is not withheld from the employee's wages because it is not levied on the employee? a. Federal income tax b. Federal unemployment tax c. State income tax d. FICA tax
- Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings? a. FICA tax rate b. Wage and tax statement c. FUTA tax rate d. Wage bracket and withholding table
- Which one of the following payroll taxes are not withheld from an employee's wages? A. Federal unemployment tax B. State income tax C. FICA tax D. Federal income tax
- The 941 employer's tax payment to the IRS consists of A. Employee's FICA Withheld B. Employer's matching FICA C. Employee's federal income tax withheld D. a & b E. All of the above
- Does the employer, the employee, or both incur FICA taxes? Explain.
- Employers: A. Pay FICA taxes in equal amount to the FICA taxes withheld from the employees B. Withhold employees' FICA taxes
- Which of the following payroll taxes do employers pay on employees? A. SUTA B. FUTA C. FICA D. All of these E. None of these
- Which of the following payroll taxes is not paid by the employee? A. federal unemployment tax B. federal income tax C. state income tax D. FICA (Social Security and Medicare)
- Which of the following taxes are employers required to withhold from employees? a. federal unemployment tax b. FICA tax c. FICA tax, state, and federal unemployment tax d. state unemployment tax
- An employee earned $45,600 during the year working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee's annual FICA taxes amount is: a. $3,488.40. b. $6,976.80. c. $661.20. d. Zero, sin
- To which of the following payroll taxes are employers required to contribute a matching portion for each employee? A. State unemployment B. Federal unemployment C. FICA Medicare D. FICA Social Security E. All of these
- What requires employers to deduct Social Security and Medicare taxes from employee earnings and to periodically remit this amount plus pay a matching amount? A. biweekly B. FICA C. gross pay D. net pay E. Payroll Tax Update Service F. SDI
- Employers withhold which of the following from employees' paychecks? a) LFRA b) FICA c) Unemployment Tax d) All of the Above
- An employee earned $41,000 during the year working for an employer. The FICA tax for social security is 6.2% and the FICA tax for Medicare is 1.45%. The employee's share of FICA taxes is: a.. $594.50. b. $2,542.00. c. $3,136.50. d. $3,731.00. e. Zero
- Which of the following is a form prepared by the employer listing the wages paid and the federal income and FICA taxes owed for that quarter? a. Form 940 b. Form 941 c. Form 1099 d. Form 8109
- Which of the following taxes would be deducted in determining an employee's net pay? a. FUTA taxes b. SUTA taxes c. FICA taxes d. all are correct
- Which of the following taxes has a ceiling on the amount of annual earnings subject to tax? a. Sale tax. b. Federal income tax. c. FICA - OASDI taxes. d. FICA Medicare taxes.
- Employers withhold which of the following from employee's paychecks? a. LFRA b. FICA c. Unemployment Tax d. All of the Above.
- Which of the following taxes would be deducted in determining an employee's net pay? a. FUTA taxes b. SUTA taxes c. FICA taxes d. all of the above
- During the current year, Margie earned wage income of $300,000. If Margie is single, which of the following statements regarding her Medicare tax liability is true? a. Margie will owe both the regular 1.45 percent Medicare tax and the additional 0.9 perce
- Which of the following payroll taxes are usually filled and remitted annually? a. Federal unemployment taxes. b. FICA taxes. c. State unemployment taxes. d. Federal and state unemployment taxes.
- Which of the following payroll taxes has a maximum of earnings subject to the tax? A. State unemployment tax B. FICA Social Security C. FICA Medicare D. All of these E. Both state unemployment tax and FICA Social Security
- Find the correct answer regarding FICA taxes a)117.65 percent of earned income up to $150,000. b) Paid by the employee and by the employer. c) Not subject to cost of living adjustments each year. d) 7.65 percent of all earned income with no limitations.
- Employers must pay employee taxes in addition to those paid by the employees. Which of the following is paid only by the employer? a. State taxes b. SUTA c. FICA d. Insurance premiums e. Federal taxes
- FICA taxes include ________. (a) social security taxes (b) charitable giving (c) employee income taxes (d) unemployment taxes.
- What are an employer's responsibilities for FICA taxes on Wages paid tipped employees?
- Which of the following taxes does not represent a payroll deduction a company may incur? a. Federal income taxes b. FICA taxes c. State unemployment taxes d. State income taxes
- Which of the following is paid by the employer only? A. OASDI tax B. Employee income tax C. Medicare tax D. Federal unemployment tax
- Which of the following are included in the employer's payroll taxes? a. SUTA taxes b. FUTA taxes c. social security taxes d. All are included in employer taxes.
- 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--? a. No deposit is required until
- Which of the following taxes would not be withheld from an employee's paycheck? a. Medicare taxes. b. Federal unemployment taxes. c. Social Security taxes. d. Federal income taxes.
- Which of the following payroll taxes is the employee's responsibility? A. Federal Income Tax, FICA SS & Medicare, FUTA B. Federal Income Tax, FUTA, SUTA C. Federal Income Tax, FICA SS & Medicare D. FICA SS & Medicare, FUTA, SUTA
- An employee earned $4,300 working for an employer. The current rate for FICA Social Security is 6.2% and the rate for FICA Medicare is 1.45%. What is the employer's total FICA payroll tax for this employee?
- Jan has two jobs during 2012. One employer withheld and paid FICA taxes on $66,600 of Jan's salary, and the other employer withheld and paid FICA taxes on $44,400 in salary paid to Jan. Calculate the amount of Jan's overpayment of FICA taxes that she sho
- Which of the following is not a payroll tax expense to the employer? a. State unemployment taxes. b. Federal unemployment taxes. c. Social Security and Medicare taxes. d. Federal income taxes withheld from employee paychecks.
- Determine whether the following statement is correct or not. The company prepares, but does not yet pay, its first payroll of the new year. Salaries total $10,000 and 7.65% is withheld from paychecks for FICA tax. Ignore all other payroll deductions. The
- Which of the following statements is not correct? a. The accountant obtains information about wages subject to payroll taxes from the payroll register. b. Most commercial banks are authorized to accept the employee's tax deposits for federal income taxe
- How does the FICA tax compare to the self-employment tax? How are these two taxes similar and how do they differ? Explain using examples.
- For which of the following taxes is there no ceiling on the amount of employee annual earnings subject to the tax? a. only FICA tax b. only federal income tax c. only federal unemployment compensation tax d. only state unemployment compensation tax
- FICA and unemployment taxes are examples of [{Blank}] (employee/employer) taxes.
- Which of the following statements about the alternative minimum tax is true? A. All of the answers are true. B. Regular taxable income is the starting point for determining AMT. C. Taxpayers must add back the standard deduction amount regardless of whe
- An employee has year-to-date earnings of $105,000. The employee's gross pay for the next pay period is $5,000. If the FICA wage base is $106,800, how much FICA tax will be withheld from the employee's pay? a. $184.10 b. $382.50 c. $310.00 d. $137.70
- An employee receives $100 in tips during March. She reports the tips to her employer. Which of the following statements is correct regarding tips? a) The employer adds the $100 to the employee's wages and withholds income, social security, and Medicare ta
- Which of the following is a state tax used to pay benefits to employees who are temporarily disabled? A. biweekly B. FICA C. gross pay D. net pay E. Payroll Tax Update Service F. SDI
- An employee earns $7,500 in wages and has $1,800 in Federal Income Tax withheld and $318 in State Income tax withheld. In addition, 1.45% for FICA-Medicare and 6.2% for FICA-Social Security is withheld. Prepare a journal entry for the employer to record
- An employee earns $5,850 per month working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTA t
- An employee earns $5,650 per month working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTA t
- What is the amount remaining after deductions have been subtracted from an employee's earnings called? A. biweekly B. FICA C. gross pay D. net pay E. Payroll Tax Update Service F. SDI
- Which of the following statements concerning taxation is accurate? A. Only the owners must pay taxes on corporate income. B. Corporations pay federal income taxes but not state income taxes. C. Corporations pay federal and state income taxes. D. Partn
- Which payroll tax is levied on both employers and employees?
- What is the federal form on which an employee indicates the number of exemptions/dependents to be used in calculating the amount of federal income tax withholding for the employee?
- Calculate the total amount of FICA withholding for an employee whose pay is 2,400 for the first pay period of the year. The tax rate for FICA-social security is 6.2% and the tax rate for FICA-medicare is 1.45%.
- Baker is single and earned $226,200 of salary as an employee in 2015. How much should his employer have withheld from his paycheck for FICA taxes? a. $10,863 b. $15,916 c. $9,681 d. $10,247
- Baker is single and earned $225,900 of salary as an employee in 2018. How much should his employer have withheld from his paycheck for FICA taxes?
- Which of the following employees would not be exempt from the FICA and Medicare taxes on wages paid for household work? (a) The taxpayer's 20-year-old sister (b) The taxpayer's wife (c) The taxpayer's 16-year-old daughter (d) The I4-year-old babysitter fr
- Which of the following statements is incorrect? a. If the tentative minimum tax exceeds the regular income tax liability, the AMT is $0. b. The exemption amount increases as AMTI increases. c. The AMT tax rate for an individual taxpayer can be as high
- The following payroll taxes that are strictly the employer's responsibility A. SUTA B. FUTA C. FICA SS Employee Withheld D. Federal Tax Withheld E. a & b
- As of December 1, 2017, Joe's year-to-date wages are $125,900. On December 8, 2017, he is due wages of $2,000. How much FICA tax should the employer withhold from this payment? a. 128.20 b. 153.00 c. 109.60 d. 58.40
- An employee earned $62,400 during the year working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are ap
- An employee earned $5,300 working for an employer in the current year. The current rate for FICA Social Security is 6.2% payable on earnings up to $117,000 maximum per year and the rate for FICA Medicare 1.45%. The employer's total FICA payroll tax for th
- An employee earned $43,100 working for an employer in the current year. The current rate for FICA Social Security is 6.2% payable on earnings up to $118,500 maximum per year and the rate for FICA Medicare 1.45%. The employer's total FICA payroll tax for t
- An employee earns $5,900 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45% of
- Major Co. has five employees, each of whom earns $2,500 per month and has been employed since January 1. FICA Social Security taxes are 6.2% of the first $106,800 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Federal income tax wi
- Susan's 2017 year-to-date FICA taxable wages are $80,000. On December 24, 2017, she receives a $10,000 bonus. How much FICA tax should be withheld on the bonus? a. $145.00 b. $765.00 c. $0 d. $620.00
- Wage and Tax Statement Data on Employer FICA Tax: Ehrlich Co. began business on January 2, 2013. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, a
- Which of the below allowances would have the least amount of taxes withheld for federal income tax purposes? - S-0 - S-3 - S-2 - S-1
- What is done in employer matching of FICA?
- Mest Company has 9 employees. FICA Social Security taxes are 6.2% of the first $118,500 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5
- Mahmet earned wages of 108,600 during 2011. He is single and claims two withholding allowances. How much will Mahmet's employer withhold in social security taxes for the year? a. 4,485.60 b. 6,060.30 c. 6,621.60 d. 6,733.20
- Mahmet earned wages of $118,650 during 2014. He is single and claims two withholding allowances. How much will Mahmet's employer withhold in social security taxes for the year? a. $7,254.00. b. $7,3
- Which of the following is not an additional company expense? a. Charitable contribution from employees. b. Pension benefit costs. c. Employer FICA. d. Unemployment tax.
- What is the total amount earned by an employee before deductions are subtracted called? A. biweekly B. FICA C. gross pay D. net pay E. Payroll Tax Update Service F. SDI
- For this edition, the 2014 federal income tax tables, FICA rates, OASDI rate of 6.2% on wages up to $117,000 and the employee and employer HI rate of 1.45% on all wages was used. Unless instructed ot
- If the employee has $300 withheld from her check for FICA-OASDI, what is the amount that the employer would need to pay? A. 300 B. 100 C. 0 D. 400
- Mester Company has 10 employees. FICA Social Security taxes are 6.2% of the first $117,000 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are
- An employee earns $6,400 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and t
- Bubba earned a total of $221,100 for 2016. How much FICA tax is his employer required to withhold from Bubba's paychecks for the year? a) $10,525.95. b) $10,552.95. c) $10,742.85. d) $10,741.95.
- Most employers are levied a payroll tax for: A. only state and federal unemployment taxes. B. FICA taxes, federal and state unemployment taxes. C. state and federal income taxes. D. only FICA taxes.
- Wage and Tax Statement Data on Employer FICA Tax Ehrlich Co. began business on January 2. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and fede
- An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and t
- Which of the following statements is incorrect? a. The AMTI is calculated by modifying the regular tax Taxable Income. b.The AMT is a flat-rate alternative to the regular tax. c. Taxpayers may choose to pay either the regular tax or the AMT. d. Only b
- Mahmet earned wages of $115,650 during 2013. He is single and claims two withholding allowances. How much will Mahmet's employer withhold in Medicare taxes for the year?
- Most employers are required to withhold from employees which of the following employment taxes? a. Only federal unemployment compensation tax. b. Only state unemployment compensation tax. c. FICA tax. d. FICA tax, state and federal unemployment compen
- An employee earns $6,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to
- For which of the following taxes is there no ceiling on the amount of employee annual earnings subject to the tax? a. Only federal withholding tax b. Only Social Security tax c. Only unemployment compensation tax d. None of the above
- Compute employee FICA taxes for the year on earnings of $108,000 at 6.2% on a limit of $117,000 for OASDI and 1.45% for Medicare. - $8,187.60 - $8,262.00 - $6,621.60 - $8,170.20
- An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 4.4%. Both unemployment taxes are applied to
- An employee earns $5,550 per month working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to
- A W-4 form: A. provides the number of allowances an employee has claimed. B. shows total net wages earned for the year. C. determines the amount of FICA-OASDI to be withheld. D. determines the amount of FICA-Medicare to be withheld.
- Which of the following requires employers to deduct federal income tax from employee earnings? a. FUTA b. SUTA c. Fair Labor Standards Act d. Current Tax Payment Act
- What information appears on Form W-2, the employee's Wage and Tax Statement?
Explore our homework questions and answers library
Browse
by subject