what is tax on the net earnings of the self employed?
what are the following qualifications for:
is individual an emplyee?
is the service rendered employment?
does the individual receive taxable wages?
this is an individual, trust or estate, partnership or corporation that can employ individuals:
occupations specifically covered by FICA
agent and commission drivers
full time life insurance salesperson
full time traveling or city salesperson
individual who works at home, is supplied the goods, has to give them back, and is told how to perform?
is a federal employee hired after 1983 covered by FICA?
what is a federal employee hired prior to 1984 covered by?
what is a state and local employee with work done after July 1, 1991 and not in public retirement covered by with FICA?
what is a state and local employee, hired after March 31, 1986 and covered by public retirement, covered by in FICA?
is military with basic pay subject to FICA
is military excess of basic pay subject to FICA
is any military personnel that is temporarily employeed by the national guard-- with difference in pay covered by civilian employer--exempt from FICA?
what is totalization agreements with over 20 countries that have eliminated dual taxation and dual coverage?
Is work performed by a child under 18 for a parent exempt from FICA?
child 18-21 work done for parent, but not towards their business. is it exempt?
a household worker must receive how much income from one client to be considered covered by FICA?
is the employee a household employee if:
a. works for your business
b. follw an independent trade that is offered to general public
c. under the age of 18 and whose primary occupation is household employment?
are the following exempt or non exempt?
ordained ministers, medical interns, student nurses, US Inmates, temporary emergency employees
Ministers, certain members of religious orders, and Christian science practitioners
these employees can now elect to be covered by FICA. but after the waiver has been filed it is irrevocable.
persons who follow an independent trade, business, or profession where they offer services to the public
10th of the following month
when are tipped employees legally required to report their tips?
what form is available to report tips?
what form do employers use to report receipts from food and beverage and amount of tips reported by employees?
after the first 6 months
when does sick pay become exempt from FICA?
are tax-deferred retirement plans exempt from FICA for employees?
when it is job related or under $5250
when is educational assistance exempt from FICA?
what tax rate is 6.2% on the first $106,800
what tax rate is 1.45% on all wages?
do employees and employers pay the same amount of FICA taxes?
OASDI paid by previous employer can be counted by successor
if all these qualifications are met, what is the effect?
1. the successor acquires all property used in business.
2. the employees worked directly before and right after transfer.
3. wages were paid by prior employer in the acqusition year.
what year was SECA put into action?
what is the SECA rate for all income under 106,800?
any yearly income under this amount is ignored:
true or false: partners have to keep the same taxable year as of the partnership.
Schedule SE Form 1040
what form do sole proprietorship owners use to report income?
Employer Identification Number
This serves as the social security number for businesses
this form is used to apply for an EIN:
this is the application for a SSN:
Form W-7, ITIN
this form is used for aliens who must file a tax return but are not eligible for a SSN:
secretary of health and human services
who issues SSN to aliens that have a permit to work in the US?
5000 fine or up to 5 years in prison
What is the punishment for SS fraud?
how many SSN are you allowed to verify by phone at one time?
up to 250,000
how many SSN can you verify at one time on the internet?
up to 300
how many SSN can you verify by paper?
941 or 944
these forms reports FIT and FICA withholdings
look back period
this is the period of july of two years ago until june of the previous year.
name something that is credited to Form 941 on a quarterly basis.
safe harbor rule
this rule states that as long as the 'shortfall' of taxes deposited does not exceed 2%, the employer is allotted a certain amount of time to make the appropriate supplemental deposit.
this is the form agricultural workers use to report their income and necessary taxes deposits.
what form is used to report taxes withheld from household workers?
true or false- state and local government employers must use Form 941 and go by the same schedule as private employers.
after an employee has made this amount of deposits in one year they have to use Electronic Federal Tax Payment System:
debit and credit
what two methods can employers pay with EFTPS?
form 8109, Federal Tax Deposit Coupon
what form must an employer use to pay taxes?
immediate credit item
a check or other instrument of payment for which the bank gives immediate credit.
two days before
in order for a deposit to be considered, when should it be mailed?
a deposit over this amount must arrive on or by the due date to be considered timely:
this is a stand alone form used to report adjusted employer's quarterly federal tax return or claim for refund.
this form is used by employers who owed less than 1000 in the previous year and haven't been late for a deposit in two years or a new employer who expects to pay less than 4000 in wages that year.
5% per month up to 75%
how much is the penalty for failing to file tax returns?
$135 or 100% of the amount on return
the minimum penalty for failing to file before the due date is:
failure to fully pay employment taxes
what is this the penalty for: 0.5% of amount shown as tax on a return per month or fraction of a month, not to exceed 25%. due on or before the beginning of the month
failure to file penalty is reduced by the amount of the failure to pay fully penalty
what happens if there are both penalties for failing to file and failing to pay fully?
21 days of notice and demand from irs
when are these fines and penalties due?
any corporate underpayment of this amount will result in 6% interest rate:
what is the penalty if underpayment is for negligence or intentional disregard of the payment rules?
what is the penalty if underpayment is due to fraud?
what is the penalty for willfully failing to collect, account for, or pay employment taxes or willfully attempting to evade or defeat the taxes?
10 days after notice
when can the IRS levy on and seize any property rights held by the employer for payment?
no more than 10,000
how much is the criminal penalty for fialing to fully pay employment taxes?
up to 5 years
how much jail time can failing to pay employment taxes get you?
this is the penalty for a payment 1-5 days late
this is the penalty for a payment 6-15 days late
this is the penalty for a payment 16 or more days late
10% of undeposited taxes
this is the penalty when deposits are not made to an authorized bank or directly to the IRS
10 % of undeposited taxes
this is the penalty for deposits that are supposed to be EFTPS but aren't completed electronically
this is the penalty for payments not paid 10 days after IRS notice
failing to furnish payee statements
the max penalty for this is $100,000 in a calendar year
the penalty for this is $100 per statement, or 10% of the amounts required to be on the statements
1000 fine or up to 1 year in prison
this is the penalty for failing to furnish payee statements
$15 per failure, up to $75,000
this is the fine for filing returns with wrong information, but it is corrected within 30 days
$30 per failure, up to $150,000
this is the fine for filing returns with wrong information, but is is corrected after thirty days, before August 1
$50 per return, up to $250,000
this is the fine for returns with misinformation not corrected before August 1
intentional disregard to furnish information returns
the penalty for this is $100 per statement or 10% of the amount to be shown on statement, whichever is more. no max
what is this the penalty for: 2% of the amount. if check is less than $750, penalty is $15 or the amount of check, whichever is less