Test Bank for Payroll Accounting Ch. 3
9th Edition by Jeanette Landin
SECA - ANSwhat is tax on the net earnings of the self employed?
FICA - ANSwhat are the following qualifications for:
is individual an emplyee?
is the service rendered employment?
does the individual receive taxable wages?
person - ANSthis is an individual, trust or estate, partnership or corporation that can employ
individuals:
occupations specifically covered by FICA - ANSwhat are:
agent and commission drivers
full time life insurance salesperson
full time traveling or city salesperson
individual who works at home, is supplied the goods, has to give them back, and is told how to
perform?
yes - ANSis a federal employee hired after 1983 covered by FICA?
only medicare - ANSwhat is a federal employee hired prior to 1984 covered by?
full coverage - ANSwhat is a state and local employee with work done after July 1, 1991 and not
in public retirement covered by with FICA?
medicare only - ANSwhat is a state and local employee, hired after March 31, 1986 and covered
by public retirement, covered by in FICA?
yes - ANSis military with basic pay subject to FICA
no - ANSis military excess of basic pay subject to FICA
no - ANSis any military personnel that is temporarily employeed by the national guard-- with
difference in pay covered by civilian employer--exempt from FICA?
International Agreements - ANSwhat is totalization agreements with over 20 countries that have
eliminated dual taxation and dual coverage?
, yes - ANSIs work performed by a child under 18 for a parent exempt from FICA?
yes - ANSchild 18-21 work done for parent, but not towards their business. is it exempt?
1700 - ANSa household worker must receive how much income from one client to be
considered covered by FICA?
no - ANSis the employee a household employee if:
a. works for your business
b. follw an independent trade that is offered to general public
c. under the age of 18 and whose primary occupation is household employment?
exempt - ANSare the following exempt or non exempt?
ordained ministers, medical interns, student nurses, US Inmates, temporary emergency
employees
Ministers, certain members of religious orders, and Christian science practitioners - ANSthese
employees can now elect to be covered by FICA. but after the waiver has been filed it is
irrevocable.
independent contractors - ANSpersons who follow an independent trade, business, or
profession where they offer services to the public
10th of the following month - ANSwhen are tipped employees legally required to report their
tips?
form 4070 - ANSwhat form is available to report tips?
form 8027 - ANSwhat form do employers use to report receipts from food and beverage and
amount of tips reported by employees?
after the first 6 months - ANSwhen does sick pay become exempt from FICA?
no - ANSare tax-deferred retirement plans exempt from FICA for employees?
when it is job related or under $5250 - ANSwhen is educational assistance exempt from FICA?
OASDI - ANSwhat tax rate is 6.2% on the first $106,800
Medicare - ANSwhat tax rate is 1.45% on all wages?
yes - ANSdo employees and employers pay the same amount of FICA taxes?
9th Edition by Jeanette Landin
SECA - ANSwhat is tax on the net earnings of the self employed?
FICA - ANSwhat are the following qualifications for:
is individual an emplyee?
is the service rendered employment?
does the individual receive taxable wages?
person - ANSthis is an individual, trust or estate, partnership or corporation that can employ
individuals:
occupations specifically covered by FICA - ANSwhat are:
agent and commission drivers
full time life insurance salesperson
full time traveling or city salesperson
individual who works at home, is supplied the goods, has to give them back, and is told how to
perform?
yes - ANSis a federal employee hired after 1983 covered by FICA?
only medicare - ANSwhat is a federal employee hired prior to 1984 covered by?
full coverage - ANSwhat is a state and local employee with work done after July 1, 1991 and not
in public retirement covered by with FICA?
medicare only - ANSwhat is a state and local employee, hired after March 31, 1986 and covered
by public retirement, covered by in FICA?
yes - ANSis military with basic pay subject to FICA
no - ANSis military excess of basic pay subject to FICA
no - ANSis any military personnel that is temporarily employeed by the national guard-- with
difference in pay covered by civilian employer--exempt from FICA?
International Agreements - ANSwhat is totalization agreements with over 20 countries that have
eliminated dual taxation and dual coverage?
, yes - ANSIs work performed by a child under 18 for a parent exempt from FICA?
yes - ANSchild 18-21 work done for parent, but not towards their business. is it exempt?
1700 - ANSa household worker must receive how much income from one client to be
considered covered by FICA?
no - ANSis the employee a household employee if:
a. works for your business
b. follw an independent trade that is offered to general public
c. under the age of 18 and whose primary occupation is household employment?
exempt - ANSare the following exempt or non exempt?
ordained ministers, medical interns, student nurses, US Inmates, temporary emergency
employees
Ministers, certain members of religious orders, and Christian science practitioners - ANSthese
employees can now elect to be covered by FICA. but after the waiver has been filed it is
irrevocable.
independent contractors - ANSpersons who follow an independent trade, business, or
profession where they offer services to the public
10th of the following month - ANSwhen are tipped employees legally required to report their
tips?
form 4070 - ANSwhat form is available to report tips?
form 8027 - ANSwhat form do employers use to report receipts from food and beverage and
amount of tips reported by employees?
after the first 6 months - ANSwhen does sick pay become exempt from FICA?
no - ANSare tax-deferred retirement plans exempt from FICA for employees?
when it is job related or under $5250 - ANSwhen is educational assistance exempt from FICA?
OASDI - ANSwhat tax rate is 6.2% on the first $106,800
Medicare - ANSwhat tax rate is 1.45% on all wages?
yes - ANSdo employees and employers pay the same amount of FICA taxes?
