Reference no: EM13963441

State whether the statement is true or false. 

1. Employers do not pay payroll taxes on payments made to independent contractors.

2. The FICA tax rates and taxable wage bases are exactly the same for employees and employers.

3. Under SECA, all of an individual's self-employment income is counted in determining the OASDI tax.

4. A monthly depositor is one who reported employment taxes of $50,000 or more for the four quarters in the lookback period.

5. The highest paid executives of a firm are excluded from coverage under the Federal Insurance Contributions Act (FICA).

6. Since not-for-profit corporations are exempt from federal income taxes, they are not defined as employers under the federal income tax withholding law.

7. The amount of federal income taxes to be withheld is determined after subtracting from the employee's gross wages any local and state taxes.

8. Under the federal income tax withholding law, income taxes are not withheld from the value of meals that employers furnish workers on the employers' premises for the employers' convenience.

9.  All taxable noncash fringe benefits received during the year must be added to the employees' taxable pay on the last payday of the year.

10. Gere became the father of triplets on June 20. He must file an amended Form W-4 on or before June 30.

11. On August 1, Hunt filed an amended Form W-4 to show a decrease in the number of allowances claimed. Hunt's employer must put the new withholding allowance certificate into effect before the next weekly payday on August 5.

12. The earned income credit (EIC) reduces federal income taxes mostly for workers who have dependent children and maintain a household.

13. Eligible employees who want to receive advance EIC payments must file a special Form W-4 with their employer.

14. The IRA format of the SIMPLE plan allows employees to make tax-free contributions of up to $10,000.

 

15. Employees must be given Form W-2 on or before January 31 following the close of the calendar year.