Payroll Accounting Chap. 3 Matching and Questions for Review

CHAPTER 3 Matching Quiz E1. Employees FICA Tax range D2. hurl SS-4 H3. Semi Weekly Depositor J4. rateable for FICA A5. Non Taxable for FICA I6. Self-Employeds FICA Tax Rates C7. clay 941 B8. Monthly Depositor G9. Taxable Wage Base F10. Form SS-5 CHAPTER 3 Review Questions 1. If the person employs 1 or more man-to-mans for performances of services in the US unless such(prenominal) services or employment atomic number 18 specific anyy exempt by law. 2. Defined by the precedent relationship of employer/employee 3. If the business has the right to tell a hold outer how, when, and where to operate on 4. a person who follows an self-sufficient trade, business, or profession.Where they offer their services to the state-supported the by-line is the test Hire, supervise, & pay assistants Determine the sequence of their work Set their own hours Work for as some(prenominal) employers as they wish Are paid by the job Make their services available to the public Have an option for pro fit or bolshy Furnish their own tools Have a authentic investment in their trade May be dismissed only under terms of a contract 5a. They must collect the employees FICA impose on tips that each employee reports. Then deduct the FICA revenuees from new(prenominal) wages due to the employee 5b.Employers ar liable for their parcel of the FICA tax on any tips cause to the employees FICA tax 6. After 6 months of consecutive calendar months the hurl pay is not taxed. Period off work MUST be consecutive any expire to work restarts the 6 month count. 7. They are subject to FICA tax but the employers match chance is tax free. 8. YES The join of over payment is assign against the employees federal income tax for the year. Instructions are given on the Individual Income Tax reelect (Form 1040) that explain how the over payment should be treated. So file your taxes John 9a. 3. 3 % 2013-Projected 10. 4% for OASDI 2. 9% for HI b. Usually the net business income of singular as show n in their income tax returns make up their net earnings from self employment for the draw a bead on of the social security act. The max taxable income for an individual is $110,100 for OASDI but for HI the total income is taxable 10. The EINs can be obtained directly from the IRS website. No adaption is required and the EIN is recognized by the IRS immediately or they can call the IRS or mail or fax the SS-4 (Application for EIN) 11. The requirements are based on the lookback period.The amount of employment tax the employer reported on the quarterly returns for the 4 quarters in the lookback period determines if they are a periodical or semi periodic depositors. Each Nov. the IRS notifies employers weather they will be monthly or semimonthly depositors. 12. Pretty much all employers except those with a $2,500 or less in ? tax liabilities that pay when they file their returns. 13. loosely by touch tone phone, personal computer, or online 14. Generally 3 months of each calendar year 15a. A certain % of the amount of tax required to be reported will be added to the tax. . 5% of the undeposited taxes c. 2% of the amount (if less than $1,250 then penalty is $25 or the amount of the check, whichever is less) Practical Problems A (please determine the Excel file for the rest of the problems and then I am mailing in the forms used for problems 3-11A, 3-12A, 3-13A, 3-14A, & 3-15A) 3-15A LO4,5 b. 1. Jan. 182. Feb. 63. Feb. 204. Mar. 65. Mar. 20 6. Apr. 3 3-16A LO5 1. Apr. 15 2. a250. 52505 * 10% = 250. 50 b. 12. 532505 * ? % = 12. 53 c. 3. 712505 * 3% * (18/365) = 3. 7118 days late d. 266. 74 broad(a) Penalty Imposed