FPC Chapter 5
To determine if an employer is a monthly or semiweekly depositor for 2019, the lookback period
is:
❑ a. January 1 - December 31, 2018
❑ b. October 1, 2017 - September 30, 2018
❑ c. July 1, 2017 - June 30, 2018
❑ d. January 1 - December 31, 2017 - ANS-c. The lookback period for 2019 is July 1, 2017,
through June 30,
2018.
If the employer's total tax liability for the quarter is less than
$2,500, when must the taxes be paid?
❑ a. By the due date of Form 941
❑ b. By the 15th of the month after the withholding
❑ c. By Wednesday or Friday under the semiweekly rules
❑ d. By the next business day - ANS-a. A quarterly depositor has a total tax liability for the
quarter that is less than or equal to $2,500.
If the employer's total tax liability for the lookback period is
$48,000, when must a tax liability of less than $100,000.00 be
deposited?
❑ a. By the due date of Form 941
❑ b. By the 15th of the month after the withholding
❑ c. By Wednesday or Friday under the semiweekly rules
❑ d. By the next banking day - ANS-b. A monthly depositor had a tax liability of $50,000 or less
during the lookback period and deposits employer taxes by the 15th of the next month.
If the employer's total tax liability for the lookback period is
$75,000, when must tax liability of less than $100,000.00 be deposited?
❑ a. By the due date of Form 941
❑ b. By the 15th of the month after the withholding
❑ c. By Wednesday or Friday under the semiweekly rules
❑ d. By the next business day - ANS-c. A semiweekly depositor has a tax liability greater than
$50,000 during the lookback period and makes tax deposits by the Wednesday or Friday after
the end of the deposit period.
If the employer's total tax liability for a payday is $150,000, when must the taxes be deposited?
❑ a. By the due date of Form 941
❑ b. By the 15th of the month after the withholding
❑ c. By Wednesday or Friday under the semiweekly rules
, ❑ d. By the next business day - ANS-d. A tax liability of $100,000 or more must be deposited
on the next business day.
A company pays semimonthly on the 15th and the last day of the month. The company reported
$40,000 of federal taxes during the lookback period. This month, one payday occurs on
Wednesday, January 15th. When is the company required to make a tax deposit?
❑ a. Within three business days of the 15th
❑ b. On or before the following Wednesday
❑ c. With its quarterly Form 941
❑ d. On or before the 15th of the following month - ANS-d. The company is a monthly depositor
because the aggregate amount of employment taxes for the lookback period was $50,000 or
less and must deposit the taxes by the 15th of the following month.
The company (see Question 6) paid only 98% of its tax liability on the due date (February 15).
Which of the following is true?
❑ a. It faces a stiff penalty for failure to pay its obligation.
❑ b. The remaining 2% must be paid by March 15.
❑ c. The remaining 2% must be paid by the due date of its first
quarter Form 941.
❑ d. The remaining 2% must be paid by December 31 - ANS-c. The safe-harbor rule allows
depositors to avoid penalties as long as they deposit 98% of their tax liability by the due date. All
monthly depositors must deposit the full amount by the due date of their first quarter Form 941
(April 30).
A company is a semiweekly depositor. On its weekly Friday payday, it has a deposit liability of
$50,000.00. When must the company deposit its payroll taxes?
❑ a. By the following Wednesday.
❑ b. By the following Friday.
❑ c. By the following Monday.
❑ d. By the 15th of the following month. - ANS-a. Under the semiweekly rule, tax liabilities on
payments made on Wednesday, Thursday, and/or Friday must be deposited by the following
Wednesday. Tax liabilities on payments made on Saturday, Sunday, Monday, and/or Tuesday
must be deposited by the following Friday.
An employer's tax deposit status always remains the same for the entire year.
❑ True
❑ False - ANS-False. A monthly depositor with a liability in excess of $100,000 in a deposit
period becomes a semiweekly depositor
A semiweekly depositor has a Friday payroll with a tax liability of $85,000. The next Monday is a
holiday. When must the employer deposit the taxes to avoid penalties?
❑ a. The next Monday
❑ b. The next Wednesday
❑ c. The next Thursday
To determine if an employer is a monthly or semiweekly depositor for 2019, the lookback period
is:
❑ a. January 1 - December 31, 2018
❑ b. October 1, 2017 - September 30, 2018
❑ c. July 1, 2017 - June 30, 2018
❑ d. January 1 - December 31, 2017 - ANS-c. The lookback period for 2019 is July 1, 2017,
through June 30,
2018.
If the employer's total tax liability for the quarter is less than
$2,500, when must the taxes be paid?
❑ a. By the due date of Form 941
❑ b. By the 15th of the month after the withholding
❑ c. By Wednesday or Friday under the semiweekly rules
❑ d. By the next business day - ANS-a. A quarterly depositor has a total tax liability for the
quarter that is less than or equal to $2,500.
If the employer's total tax liability for the lookback period is
$48,000, when must a tax liability of less than $100,000.00 be
deposited?
❑ a. By the due date of Form 941
❑ b. By the 15th of the month after the withholding
❑ c. By Wednesday or Friday under the semiweekly rules
❑ d. By the next banking day - ANS-b. A monthly depositor had a tax liability of $50,000 or less
during the lookback period and deposits employer taxes by the 15th of the next month.
If the employer's total tax liability for the lookback period is
$75,000, when must tax liability of less than $100,000.00 be deposited?
❑ a. By the due date of Form 941
❑ b. By the 15th of the month after the withholding
❑ c. By Wednesday or Friday under the semiweekly rules
❑ d. By the next business day - ANS-c. A semiweekly depositor has a tax liability greater than
$50,000 during the lookback period and makes tax deposits by the Wednesday or Friday after
the end of the deposit period.
If the employer's total tax liability for a payday is $150,000, when must the taxes be deposited?
❑ a. By the due date of Form 941
❑ b. By the 15th of the month after the withholding
❑ c. By Wednesday or Friday under the semiweekly rules
, ❑ d. By the next business day - ANS-d. A tax liability of $100,000 or more must be deposited
on the next business day.
A company pays semimonthly on the 15th and the last day of the month. The company reported
$40,000 of federal taxes during the lookback period. This month, one payday occurs on
Wednesday, January 15th. When is the company required to make a tax deposit?
❑ a. Within three business days of the 15th
❑ b. On or before the following Wednesday
❑ c. With its quarterly Form 941
❑ d. On or before the 15th of the following month - ANS-d. The company is a monthly depositor
because the aggregate amount of employment taxes for the lookback period was $50,000 or
less and must deposit the taxes by the 15th of the following month.
The company (see Question 6) paid only 98% of its tax liability on the due date (February 15).
Which of the following is true?
❑ a. It faces a stiff penalty for failure to pay its obligation.
❑ b. The remaining 2% must be paid by March 15.
❑ c. The remaining 2% must be paid by the due date of its first
quarter Form 941.
❑ d. The remaining 2% must be paid by December 31 - ANS-c. The safe-harbor rule allows
depositors to avoid penalties as long as they deposit 98% of their tax liability by the due date. All
monthly depositors must deposit the full amount by the due date of their first quarter Form 941
(April 30).
A company is a semiweekly depositor. On its weekly Friday payday, it has a deposit liability of
$50,000.00. When must the company deposit its payroll taxes?
❑ a. By the following Wednesday.
❑ b. By the following Friday.
❑ c. By the following Monday.
❑ d. By the 15th of the following month. - ANS-a. Under the semiweekly rule, tax liabilities on
payments made on Wednesday, Thursday, and/or Friday must be deposited by the following
Wednesday. Tax liabilities on payments made on Saturday, Sunday, Monday, and/or Tuesday
must be deposited by the following Friday.
An employer's tax deposit status always remains the same for the entire year.
❑ True
❑ False - ANS-False. A monthly depositor with a liability in excess of $100,000 in a deposit
period becomes a semiweekly depositor
A semiweekly depositor has a Friday payroll with a tax liability of $85,000. The next Monday is a
holiday. When must the employer deposit the taxes to avoid penalties?
❑ a. The next Monday
❑ b. The next Wednesday
❑ c. The next Thursday
