Payroll Accounting Quiz ch3 - Employers do not pay payroll...

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Employers do not pay payroll taxes on payments made to independent contractors.a. Trueb. False
Which of the following payments are not taxable for FICA?
Employer payments made directly to employees in lieu of health insurance coverage are taxablewages.
If an employee, who works two or more separate jobs, pays OASDI taxes on wages in excess of thetaxable wage base, the employee is entitled to a refund of the overpayment.
The Federal Insurance Contributions Act levies a tax upon the gross earnings of self-employedpersons.a. Trueb. False
WrongPeter, age 17 and employed by his family-owned corporation, is covered under FICA.
The FICA tax rates and taxable wage bases areexactly the samefor employees and employers.
Each year, the FICA (OASDI portion) taxable wage base is automatically adjusted whenever a cost ofliving raise in social security benefits becomes available.
b. False

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Term
Fall
Professor
N/A
Tags
Accounting, Payroll Accounting, Taxes, Federal Insurance Contributions Act tax, FICA Taxes, FICA

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