M4-Other Federal Laws and Regulations

Question 1

Regarding the taxes payable under the Federal Unemployment Tax Act (FUTA), credits for this tax are allowed to employers for certain state unemployment taxes paid by the employer. (true or false)

Answer 1

true

Liability does arise when wages are constructively paid to employees.

The amount is based on the first $7,000 paid to each employee per year. It is not based on a percentage of compensation to all employees.

Question 2

Workers’ compensation programs are state run programs designed to enable employees to recover for injuries incurred while on the job. Most employers must participate in the programs; however, there are a few exceptions, including an exception for employers employing casual workers. A temporary office worker would be considered a casual employee. (true or false)

Answer 2

true

Question 3

Failure to supply taxpayer ID numbers and failure to make timely FICA deposits can both result in penalties. (true or false)

Answer 3

True

Question 4

Workers’ compensation covers both occupational diseases and aggravations of preexisting diseases. (true or false)

Answer 4

true

Question 5

All employers who have quarterly payrolls of at least $_______ or who employ at least one person one day a week for _____ weeks in a year must participate in FUTA.

Answer 5

$1500

20 weeks

Question 6

Under workers’ compensation laws, employers are generally strictly liable for injuries to employees. (true or false)

Answer 6

true

Workers’ compensation is available for injuries incurred on the job as long as they were not purposely self-inflicted.

Question 7

Under FICA, wages are compensation for labor. Reimbursed travel expenses are not considered wages and are not in gross income; therefore they are not subject to FICA. (true or false)

Answer 7

true

Under FICA, wages are compensation for labor. Thus:
-contingent fees
-bonuses
-commissions
are all considered as wages.

Question 8

The federal social security system contains four major benefit programs:

Answer 8

1. (OASI) old age and survivor insurance
2. (DI) disability insurance
3. Medicare
4. (SSI) Supplemental security income

Social security benefits do not include Medicaid payments. Medicaid is a state run program.

Question 9

Workers’ compensation laws do not provide for “full” pay during a disability. With disability benefits the employee may receive a percentage of his/her wages, but not “full” wages. (true or false)

Answer 9

true

Workers’ compensation laws can provide for:

• the cost of a prosthetic device
• burial expenses
• payments to surviving dependent children