What is the primary purpose of the Federal Insurance Contributions Act (FICA)?
Correct!
Wrong!
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?
Correct!
Wrong!
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?
Correct!
Wrong!
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?
Correct!
Wrong!
FUTA (Federal Unemployment Tax Act) is an employer-paid tax used to fund unemployment benefits.
What is the main purpose of Form 941?
Correct!
Wrong!
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?
Correct!
Wrong!
Retirement plan contributions, such as 401(k) deductions, are voluntary and taken out of an employee’s paycheck based on their election.