Payroll Tax Compliance Flashcards
7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Payroll Tax Compliance flashcards as text
What is the employer's share of the Social Security tax rate applied to employee wages up to the wage base?
Answer: 6.2%
The employer pays 6.2% of the employee's wages up to the Social Security wage base as their share of OASDI.
Which IRS form must employers file quarterly to report federal income tax withheld and FICA taxes?
Answer: Form 941
Form 941, the Employer's Quarterly Federal Tax Return, is used to report withheld income taxes and FICA taxes each quarter.
An employee earns $3,000 bi-weekly. What is the combined employee FICA tax (Social Security + Medicare) withheld per paycheck?
Answer: $229.50
Employee FICA is 7.65% (6.2% SS + 1.45% Medicare) × $3,000 = $229.50.
Under FUTA, what is the standard federal unemployment tax rate before any state credit reduction?
Answer: 6.0%
The gross FUTA rate is 6.0% on the first $7,000 of each employee's wages, before applying the 5.4% state tax credit.
What is the deposit penalty rate for payroll taxes that are 1–5 days late under the IRS penalty schedule?
Answer: 2%
A 2% penalty applies when federal payroll tax deposits are 1–5 days late under the tiered penalty structure.
Which lookback period determines whether a semi-weekly or monthly deposit schedule applies for Form 941 filers?
Answer: The 12-month period ending June 30 of the prior year
The IRS uses the 12-month lookback period ending June 30 of the prior year to assign a 941 depositor's schedule.
What triggers the Additional Medicare Tax of 0.9% for employees?
Answer: Wages exceeding $200,000 from a single employer in a calendar year
Employers must withhold the additional 0.9% Medicare Tax once they pay an employee more than $200,000 in a calendar year, regardless of filing status.