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A Wiley Review Notes REG > Federal Social Security Act > Flashcards

Flashcards in Federal Social Security Act Deck (14)
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1
Q

Taxes payable under FUTA

A

are used to provide unemployment compensation to workers who lose jobs and can’t find replacement

2
Q

FUTA Taxes

A

are paid and deductible by employer

3
Q

When must Employers must pay FUTA

A

If they paid wages of $1,500 or more during a calendar quarter OR

employed one employee for one day per week for 20 weeks

4
Q

Taxes payable under FUTA

A

is a fixed percentage of only the first $7,000 of wages to each employee

5
Q

Unemployment compensation

A

is intended for workers who lose their job through NO fault of their own and can’t find a replacement

6
Q

Refusing to accept replacement work

A

disqualifies you from collecting unemployment

7
Q

Director’s fees

A

are self employment income and subject to social security tax

8
Q

When an employer does not collect FICA tax from the employee but still pays full FICA amount

A

It is treated as income to the employee and the employer is not subject to penalty

9
Q

Social security benefits

A

may include payments to spouses (some divorced) and children. May also include Medicare BUT NOT Medicaid

10
Q

What is not considered earned income

A

Proceeds from Annuity
Pension payments
Stock Dividends

11
Q

Earned income in excess of annual limitation amount

A

will cause a reduction in a retired person’s social security benefits

12
Q

Unemployment insurance tax

A

1) must be paid by the employer if they employ anyone covered by the act
2) Not deducted from employee salaries

13
Q

A car received as compensation

A

is subject to social security tax

14
Q

Violation of the Federal Social Security Act

A

Includes Failure to supply employee TIN numbers
failure to collect taxes
failure make timely FICA Deposits

Decks in A Wiley Review Notes REG Class (99):