QUESTION 1

Employees are exempt from having social security tax withheld if:

		they are over age 65
		they are over age 67
		they collect social security benefits
		they write "EXEMPT" on Form W-4
		none of the above reasons would exempt an employee from social security tax

QUESTION 2

FIT need not be withheld if the employee:

works for your firm one day a week or less

works for your firm part time (1 day a week) and only when called

is a student hired only for the summer

none of the above situations are exempt from FIT

all of the above situations are exempt from FIT

QUESTION 3

Carla earns $162,000 from January through November before resigning to work for a new employer who pays her $15,000 for December. How would FICA taxes be withheld on the $15,000?

		only a portion of the $15,000 would be subject to both HI and OASDI
		the entire $15,000 would be subject to HI, but only a portion of the $15,000 would be subject to OASDI
		none of the $15,000 is subject to HI or OASDI
		the entire $15,000 would be subject to both HI and OASDI
		the entire $15,000 would be subject to HI, but none of the $15,000 would be subject to OASDI