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) defined pension and Medicare.
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 persons who have become disabled.
D) All of the above are correct.
13) 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.
14) Dave Brown's cumulative earnings are $73,000, and his gross pay for the week is $6,200. If the FICA rates are: OASDI 6.2% on a limit of $117,000 and Medicare is 1.45%, what are his FICA-OASDI and FICA-Medicare taxes for the week?
A) $0; $89.90
B) $384.00; $0
C) $384.40; $89.90
D) $3,844; $899.00
15) Dave Brown's cumulative earnings are $108,000, and his gross pay for the week is $6,200. If the FICA rates are: OASDI 6.2% on a limit of $117,000 and Medicare is 1.45%, what are his FICA-OASDI and FICA-Medicare taxes for the week?
A) $0; $89.90
B) $0; $0
C) $384.40; $89.90
D) $384.40; $0
16) Dave Brown'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 $117,000 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) $328.60; $76.85
17) Bill James earned $800 for the week. If his cumulative earnings are $30,000 prior to this pay period, how much FICA-OASDI must his employer withhold from his earnings? FICA tax rates are OASDI 6.2% on a limit of $117,000.
A) $496.00
B) $4.96
C) $49.60
D) None of the above is correct.
18) To compute federal income tax to be withheld:
A) use the net earnings and number of allowances and deduct over-time.
B) use gross earnings, number of allowances, and marital status.
C) use net earnings and Form W-4.
D) None of these answers is correct.
19) Compute employee FICA taxes for the year on earnings of $108,000 at 6.2% on a limit of $117,000 for OASDI and 1.45% for Medicare.
A) $8,187.60
B) $8,262.00
C) $8,170.20
D) $6,621.60
20) Bob Stein's hourly wage is $45.00, and he worked 42 hours during the week. Assuming an overtime rate of time and a half over 40 hours, Bob's gross pay is:
A) $1,935.
B) $1,720.
C) $2,580.
D) $1,600.
