Question 1

Contract laborers get deductions for Social Security and Medicare taxes whenever they get paid.

A

True

B

False

Question 2

Employees and employers are contributing to the same amount of social security and Medicare taxes starting 2011.

A

True

B

False

Question 3

The employers contribute to the state unemployment and not the federal unemployment.

A

True

B

False

Question 4

The federal withholding taxes are mandatory contributions of the employers.

A

True

B

False

Question 5

The social security and Medicare taxes deducted from employees become the liabilities of the employers.

A

True

B

False

Question 6

The 401-K pension plans of the employees are mandatory contributions of the employers.

A

True

B

False

Question 7

The state unemployment tax rate is 0.8% of the gross pay per employee with no limit.

A

True

B

False

Question 8

The Medicare tax rate is 1.45% of the gross pay with no limit.

A

True

B

False

Question 9

Form 941 is used for federal unemployment taxes to be paid by the employers.

A

True

B

False

Question 10

Form W-2 is the Employees Wage and Tax Statement which must be sent to employees no later than Jan. 31 of the following year the earnings were paid.

A

True

B

False