11) There are two parts to FICA:

A) old age benefits and workers’ compensation.

B) retirement and income tax withholdings.

C) OASDI and Medicare.

D) All of these answers are correct.

 

12) FICA taxes provide funding to the government to pay:

A) monthly retirement benefits for persons over age 62.

B) medical benefits for persons over age 65.

C) benefits for person who have become disabled.

D) All of the above are correct.

13) Which of the following taxes has a maximum amount an employee must pay in a year?

A) Federal income tax

B) FICA-Medicare tax

C) FICA-OASDI tax

D) State Income tax

 

14) Net pay equals:

A) gross pay less all deductions.

B) regular earnings + overtime earnings.

C) Gross earnings.

D) net earnings + overtime earnings greater than the amount withheld from the employee.

 

15) Brian Temple’s cumulative earnings are $73,000, and his gross pay for the week is $5,300. If the FICA rates are: OASDI 6.2% on a limit of $106,800 and Medicare is 1.45%, what are his FICA-OASDI and FICA-Medicare taxes for the week?

A) $0; $76.85

B) $328.60; $0

C) $328.60; $76.85

D) $3,286; $768.50

 

16) Brian Temple’s cumulative earnings are $107,000, and his gross pay for the week is $5,300. If the FICA rates are: OASDI 6.2% on a limit of $106,800 and Medicare is 1.45%, what are his FICA-OASDI and FICA-Medicare taxes for the week?

A) $0; $76.85

B) $0; $0

C) $328.60; $76.85

D) $328.60; $0

17) Brian Temple’s cumulative earnings are $102,000, and his gross pay for the week is $5,300. If the FICA rates are: OASDI 6.2% on a limit of $106,800 and Medicare is 1.45%, what are his FICA-OASDI and FICA-Medicare taxes for the week?

A) $297.60; $76.85

B) $0; $0

C) $31.00; $7.25

D) $31.00; $76.85

 

18) Tracey Thrasher earned $800 for the week. If her cumulative earnings are $30,000 prior to this pay period, how much FICA-OASDI must her employer withhold from her earnings? FICA tax rates are OASDI 6.2% on a limit of $106,800.

A) $496.00

B) $0

C) $49.60

D) None of the above are correct.

 

19) To compute federal income tax to be withheld:

A) use the net earnings and number of allowances.

B) use gross earnings, number of allowances, and marital status.

C) use net earnings and Form W-4.

D) None of these answers are correct.

 

20) Compute employee FICA taxes for the year on earnings of $108,000 at 6.2% on a limit of $106,800 for OASDI and 1.45% for Medicare.

A) $8,187.60

B) $8,262.00

C) $8,170.20

D) $6,621.60

 

 



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