101. Redford\'s salary was $124,000 in 2014. What would his total combined FICA
ID: 2449950 • Letter: 1
Question
101. Redford's salary was $124,000 in 2014. What would his total combined FICA tax (OASDI & Medicare) withheld from his salary be for the year? (Points : 1) $8,951
$9,052
$9,486
$10,000
None of the previously listed choices are correct
Reimbursements of ordinary and necessary expenses are subject to federal income tax withholding.
Excess reimbursements of ordinary and necessary expenses are never subject to withholding.
Reimbursements received by an employee under a plan which contains a requirement to return excess amounts, and the employee does so, are automatically excluded from the definition of wages subject to withholding.
Provided that reimbursements are received by an employee under a plan which requires the employee to substantiate the expenses to his employer, the amounts are automatically excluded from the definition of wages subject to withholding, without regard to whether the employee actually substantiates the expenditures.
All of the other choices are true statements.
$91.80
$45.90
$37.20
None of the previous choices
Explanation / Answer
101.Salary=$1,24,000
Total combined FICA tax (OASDI & Medicare)=15.3%on $1,17,000+2.9%on $1,24,000-$1,17,000
=$1,17,000*15.3%+$7,000*2.9%
=$17,901+$203
=$18,104
102.Elwin can apply $0 as a credit against his 2014 income tax liability for overpayment of FICA taxes
103.The statement which is not true is
Wages subject to FICA tax that are received by a self-employed individual reduce the individual's maximum self-employment tax base.
104.Pear Corporation must deposit payroll taxes
monthly.
105.One-day deposit rule payroll tax deposit schedules is not a rule that applies for a class of employers.
106.An employer must provide form W-2 to his employee by January 31 of the following year.
107. Form 1099-MISC must be used by a company to report a payment of $1,500 to a computer consultant who is not an employee of the company .
108. Form 1099-DIV is an information return used to show the payment of Dividends.
109. Dividends paid to a shareholder by a corporation should be reported on form1099-R
110.The statement Reimbursements received by an employee under a plan which contains a requirement to return excess amounts, and the employee does so, are automatically excluded from the definition of wages subject to withholding is true with regard to the reimbursement of employee business expenses.
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