Payroll Accounting Chap. 3 Matching and Questions for Review

CHAPTER 3 co-ordinated Quiz E1. Employees FICA evaluate grade D2. Form SS-4 H3. Semi Weekly Depositor J4. dutiable for FICA A5. Non rateable for FICA I6. Self-Employeds FICA Tax Rates C7. Form 941 B8. Monthly Depositor G9. Taxable Wage Base F10. Form SS-5 CHAPTER 3 Review Questions 1. If the individual employs 1 or more individuals for performances of serve in the US unless such services or utilization atomic number 18 specifically exempt by law. 2. Defined by the common-law kindred of employer/employee 3. If the business has the right to tell a leaner how, when, and where to work 4. a person who follows an independent carry on, business, or profession.Where they darker their services to the public the following is the test Hire, supervise, & angstrom pay assistants Determine the sequence of their work Set their own hours Work for as many employers as they wish ar paid by the job get their services available to the public shed an option for profit or neediness Furnis h their own tools Have a substantial investment in their trade May be dismissed tho under terms of a commence 5a. They must collect the employees FICA task on tips that to each one employee reports. Then cipher the FICA valuatees from other wages due to the employee 5b.Employers atomic number 18 liable for their share of the FICA valuate on any tips subject to the employees FICA tax 6. subsequently 6 months of sequent calendar months the excited pay is not taxed. Period off work MUST be consecutive any return to work restarts the 6 month count. 7. They are subject to FICA tax but the employers match service of process is tax free. 8. YES The total of over recompense is credited against the employees federal income tax for the year. Instructions are given on the Individual Income Tax Return (Form 1040) that pardon 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 displace business inco me of individual as shown in their income tax returns make up their lolly earnings from self employment for the utilization of the social security act. The max nonexempt income for an individual is $110,100 for OASDI but for HI the complete income is taxable 10. The EINs can be obtained directly from the IRS website. No registration is mandatory and the EIN is recognized by the IRS immediately or they can call the IRS or ring armour or fax the SS-4 (Application for EIN) 11. The requirements are base 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 monthly or swindle monthly depositors. Each Nov. the IRS notifies employers weather they provide be monthly or semimonthly depositors. 12. Pretty much all employers pull those with a $2,500 or less in ? tax liabilities that pay when they file their returns. 13. mainly by touch tone phone, individual(prenominal) co mputer, or online 14. Generally 3 months of each calendar year 15a. A real % 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 see the travel by file for the rest of the problems and then I am mailing in the forms apply 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 replete(p) Penalty Imposed