Payroll and Taxes Flashcards
6 cards from real CB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Payroll and Taxes flashcards as text
What is the primary purpose of the Federal Insurance Contributions Act (FICA)?
Answer: To fund Social Security and Medicare programs
FICA is a U.S. law that requires employers and employees to contribute to Social Security and Medicare programs.
Which form is used by employees to determine federal income tax withholding?
Answer: Form W-4
The IRS Form W-4 allows employees to specify their tax withholding preferences for federal income tax purposes.
What is the deadline for employers to issue Form W-2 to employees?
Answer: January 31
Employers must provide Form W-2 to employees by January 31st of the following year to report wages and tax withholdings.
Which payroll tax is paid only by employers?
Answer: FUTA
FUTA (Federal Unemployment Tax Act) is an employer-paid tax used to fund unemployment benefits.
What is the main purpose of Form 941?
Answer: To report quarterly payroll taxes
Form 941 is used by employers to report payroll taxes, including federal income tax and Social Security/Medicare withholdings, on a quarterly basis.
Which of the following is an example of voluntary payroll deductions?
Answer: 401(k) contributions
Retirement plan contributions, such as 401(k) deductions, are voluntary and taken out of an employee’s paycheck based on their election.