Mod 33 Regulation Of Employment & Environment Flashcards
Federal Insurance Contribution Act (FICA):
FICA includes benefits for…4
1 old age
2 survivors
3 disability
4 hospital insurance
Federal Insurance Contribution Act (FICA):
Hospital insurance under FICA
Includes Medicare (but not Medicaid)
Federal Insurance Contribution Act (FICA):
Can collect…
Can collect more than was contributed
Federal Insurance Contribution Act (FICA):
Can get more benefits if…
Mothering was contributed
Federal Insurance Contribution Act (FICA):
Taxable benefits
Up to 85% of benefits can be taxable if certain income levels are exceeded
Federal Insurance Contribution Act (FICA):
Benefits are reduced if…
2) what does not reduce benefits?
Earned income is too high once threshold level is exceeded
2) unearned income doesn’t reduce benefits
Federal Insurance Contribution Act (FICA):
Can receive benefits even if also…
Receiving payments from private pension plan
Federal Insurance Contribution Act (FICA):
Tax is paid by…3
1 employer
2 employee
3 self employed
Federal Insurance Contribution Act (FICA):
Wages are broadly interpreted
Includes almost all types of earned compensation
Unearned income is…
Not subject to FICA tax
Federal Insurance Contribution Act (FICA):
Employee’s share of tax is…
Withheld by employer
Federal Insurance Contribution Act (FICA):
Failure of employer to withhold…
Makes employer liable for employee’s share
Federal Insurance Contribution Act (FICA):
There is a right to reimbursement by employee if…
Employer pays employee’s share
Federal Insurance Contribution Act (FICA):
Deductible to employer
Deductible to employer if they voluntarily pay employee’s share
Federal Insurance Contribution Act (FICA):
Employer must match…
Employee’s payment
Federal Insurance Contribution Act (FICA):
Employer must match employee’s payment, therefor it is…2
1 deductible by employer
2 not deductible by employee
Federal Insurance Contribution Act (FICA):
Employer must make timely FICA deposits and…
Supply taxpayer ID number
Federal Insurance Contribution Act (FICA):
Self employed pay a tax equal to…2
1 Total contributed by employer and employee
2 tax is based on net profit, not gross earnings
What does FUTA stand for?
Federal Unemployment Tax Act
Federal Unemployment Tax Act (FUTA):
Provides unemployment benefits
Can collect more than was contributed
Federal Unemployment Tax Act (FUTA):
To receive unemployment benefits the individual must be…2
1 unemployed through no fault of their own and
2 willing and able to work
Federal Unemployment Tax Act (FUTA):
Administered by…2
1 The states
2 but federal law provides general guidelines and standards
Federal Unemployment Tax Act (FUTA):
Who is the tax paid by?
Paid by employer (not the employee)
Federal Unemployment Tax Act (FUTA):
Current rate on FUTA
6.2% of the first $7,000 in wages