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  3. employers do not pay payroll taxes on payments mad

Employers do not pay payroll taxes on payments made to independent contractors. True False ...

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Question

Accounting

Employers do not pay payroll taxes on payments made to independent contractors.

True

False

Which of the following payments are not taxable for FICA?

a. Retroactive wage increase.

b. Wage supplements to cover difference between employees' salaries and their military pay.

c. Severance pay.

d. Back-pay awards.

e. Difference between employees' regular wages and the amount received for jury duty.

Peter, age 17 and employed by his family-owned corporation, is covered under FICA.

True

False

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 Tuesday, August 18.

b. The taxes must be deposited on or before August 31.

c. The undeposited taxes should be carried over to the end of September.

d. The taxes must be deposited by the close of the next banking day.

e. None of these choices are correct.

FICA defines all of the following as wages except:

a. standby payments.

b. employees' social security taxes paid for by the employer.

c. total cash tips of $15 received by a tipped employee in May.

d. first six months of sick pay.

e. year-end bonuses.

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