Select the best answer for the following questions. There are 25 questions.

Flag this Question

Question 1 2 pts

Which of the following statements regarding Social Security tax is false?

Social Security tax was first levied on employees in 1937.

All earnings of an employee that exceed the taxable wage base in a single year are not subject to Social Security tax.

Social Security tax is also referred to as OASDI tax because it was initially established to benefit retired employees, survivors of employees, and disabled employees.

Contributions to cafeteria plans are not taxable for Social Security tax.

Flag this Question

Question 2 2 pts

Which of the following is taxable for Social Security tax?

Contributions to a cafeteria plan.

Contributions to a flexible spending account.

Contributions to a 403(b) plan.

Contributions to a dependent care flexible spending account.

Flag this Question

Question 3 2 pts

The additional Medicare tax is paid on a portion of employee earnings by which of the following individuals?

Keanu Levine's filing status is married filing separately. He earns $132,000 during the year.

Jeanette Yancy's filing status is head of household. She earns $194,000 during the year.

Carolyn Hughes' filing status is qualifying widow. She earns $187,000 during the year.

Joe Stinson's filing status is married filing jointly. He earns $174,000 during the year.

Flag this Question

Question 4 2 pts

If an individual whose filing status is single earns $256,000 during the year, what portion of the earnings are subject to additional medicare tax, and what is the total (standard and additional) Medicare tax rate that will be applied to these earnings.

$6,000 & 0.90%

$56,000 & 0.90%

$6,000 & 2.35%

$56,000 & 2.35%

Flag this Question

Question 5 2 pts

Contributions to which of the following retirement plans are subject to federal income tax withholding?

403(b)

SIMPLE IRA

401(k)

Payroll Deduction IRA

Flag this Question

Question 6 2 pts

Which of the following payroll register columns can contain a combination of multiple withholding amounts?

Voluntary withholdings

Medicare

Social Security

State income tax withholding

Flag this Question

Question 7 2 pts

The 2015 Social Security taxable wage base is _______.

$118,500

$117,300

$100,000

$113,700

Flag this Question

Question 8 2 pts

The income threshold for additional Medicare tax levied is based on the _____.

Social Security income threshold

filing status of the employee.

age of the employee

cumulative amount in the employee's Social Security account

Flag this Question

Question 9 2 pts

Which of the following is true in regard to wage garnishments?

The wage garnishment amount is based on disposable earnings.

All the above.

The wage garnishment limit can be increased for child support.

The wage garnishment may only be ordered by court order or other legal proceeding.

Flag this Question

Question 10 2 pts

In which of the following institution types may a 403(b) plan be made available to employees.

Fortune 500 companies

Both tax-exempt organizations and public education institutions.

Public education institutions

Certain tax-exempt organizations.

all the above

Flag this Question

Question 11 2 pts

All the options listed below may be available to employees as voluntary non-taxable deductions except ____.

Medicare

Medical Care Reimbursemens

Group-Term Life Insurance

Adoption Assistance

Flag this Question

Question 12 2 pts

Prior to the current period, Omar Phipps has earnings subject to Social Security tax of $115,850. During the current week Omar has gross earnings of $1,250, and contributes $60 to a dependent-care flexible spending account. What are his earnings subject to Social Security tax during the current week?

$1,190

$1,250

$1,150

$1,310

Flag this Question

Question 13 2 pts

Prior to the current period, Maxwell Reiner has earnings subject to Medicare tax of $131,000. During the current week, Maxwell has gross earnings of $3,500. What is his Medicare tax for the week?

$217

$0.0

$50.75

$101.50

Flag this Question

Question 14 2 pts

Which of the following is the earnings threshold over which an employee whose filing status is married filing separately will be subject to the additional Medicare tax?

$117,000

$250,000

$125,000

$200,000

Flag this Question

Question 15 2 pts

Prior to the current period, Sol Berenson, has earnings subject to FICA Tax of $118,000. During the current week, Sol has gross earnings of $1,900. How much FICA tax is owed by Sol for this period?

$31

$27.55

18.60

$58.55

Flag this Question

Question 16 2 pts

Anderson Brown works 39 hours during the first week of the calendar year, and earns regular wages of $15/hour. Assuming that she requests that 4% of her gross pay be contributed to a 401(k) plan, and that she contributes $25 per week to a dependent-care flexible spending account, what is her Social Security tax for the week?

$8.12

$33.27

$34.72

$36.27

Flag this Question

Question 17 2 pts

Which of the following is not a retirement plan?

SIMPLE IRA

403(b)

401(k)

Flexible spending account

Flag this Question

Question 18 2 pts

Social Security tax is also referred to as OASDI (Old Age, Survivors and Disability Insurance).

True

False

Flag this Question

Question 19 2 pts

All voluntary deductions are subtracted from gross pay to arrive at the taxable earnings used for calculating Social Security tax.

True

False

Flag this Question

Question 20 2 pts

Assuming that an employee's earnings do not exceed the Social Security Tax wage base, the amount of taxable earnings used to calculate Medicare tax is the same amount that is used to calculate Social Security Tax.

True

False

Flag this Question

Question 21 2 pts

An individual's filing status is used to determine the income threshold over which additional Medicare tax is levied.

True

False

Flag this Question

Question 22 2 pts

Anyone can place a wage garnishment on an employee's earnings.

True

False

Flag this Question

Question 23 2 pts

Under no circumstances may additional withholdings above the contribution limit be made for either a 401(k) or 403(b) plan.

True

False

Flag this Question

Question 24 2 pts

The Employee Retirement Income Security Act (ERISA) requires that employers offer retirement plans to their employees.

True

False

Flag this Question

Question 25 2 pts

Taxable earnings for Social Security tax are always the same as taxable earnings for federal income tax withholding.

True

False