Question

1. Peter, age 17 and employed by his family-owned corporation, is covered under FICA. True or False

2. FICA does not consider the first six months of sick pay as taxable wages. True or False

3. Payments made to a worker's spouse for hospital expenses in connection with an accident disability are not considered wages under FICA. True or False

4. Employer payments made directly to employees in lieu of health insurance coverage are taxable wages. True or False

5. Each year, the FICA (OASDI portion) taxable wage base is automatically adjusted whenever a cost of living raise in social security benefits becomes available. True or False

6. The FICA tax rates and taxable wage bases are exactly the same for the employee and employer when the employee makes $200,000 or less. True or False

7. Self -employed persons include their self-employment taxes in their quarterly payment of estimated federal income taxes. True or False

Answer 1

1. Peter, age 17 and employed by his family-owned corporation, is covered under FICA. (True)

2. FICA does not consider the first six months of sick pay as taxable wages. (False)

3. Payments made to a worker's spouse for hospital expenses in connection with an accident disability are not considered wages under FICA (True)

4. Employer payments made directly to employees in lieu of health insurance coverage are taxable wages. (True)

5. Each year, the FICA (OASDI portion) taxable wage base is automatically adjusted whenever a cost of living raise in social security benefits becomes available. (True)

6. The FICA tax rates and taxable wage bases are exactly the same for the employee and employer when the employee makes $200,000 or less. (True)

7. Self -employed persons include their self-employment taxes in their quarterly payment of estimated federal income taxes. (True)