True or False 1)FICA Taxes Payable—OASDI is a liability account debited for the

Question

True or False 1)FICA Taxes Payable—OASDI is a liability account debited for the employer's portion of the FICA tax. 2)FUTA Taxes Payable is an expense account in which are recorded the employer's federal unemployment taxes.3)Since the credit against the FUTA tax (for SUTA contributions) is made on Form 940, the employer's payroll tax entries should include the FUTA tax at the gross amount (6.0%). 4When recording FICA taxes, different liability accounts should be set up for the employees' and employer's portions of the tax. 5)Every state allows employers to make e-payment options as a condition of employment.6)If an employer pays unemployment taxes to two states, it will have the same SUTA tax rate in both states. 7)Unemployment taxes (FUTA and SUTA) do not have to be paid by an employer who has only part-time employees. 8)In some states, employers may obtain reduced unemployment compensation rates by making voluntary contributions to the state fund. 9)Form 940 must be mailed to the IRS by January 15. 10)In most states, the contribution reports and the wage information reports are filed quarterly. 11)In order to obtain the maximum credit allowed against the federal unemployment tax, the employer must have paid its SUTA contributions by the due date of Form 940.

Explanation / Answer

False.

FICA taxes payable is a payable to the employer so it is a liability account. This is the amount of money withheld by the employer from their employees’ compensation. Therefore, it is actually an amount being paid by the employee and it is not a part of employer’s portion of FICA taxes. Therefore, this statement is false.

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