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QUESTION 1 Employees are exempt from having social security tax withheld if: the

ID: 2525610 • Letter: Q

Question

QUESTION 1

Employees are exempt from having social security tax withheld if:

they are over age 65

they are over age 67

they collect social security benefits

they write "EXEMPT" on Form W-4

none of the above reasons would exempt an employee from social security tax

QUESTION 2

FIT need not be withheld if the employee:

works for your firm one day a week or less

works for your firm part time (1 day a week) and only when called

is a student hired only for the summer

none of the above situations are exempt from FIT

all of the above situations are exempt from FIT

QUESTION 3

Carla earns $162,000 from January through November before resigning to work for a new employer who pays her $15,000 for December. How would FICA taxes be withheld on the $15,000?

only a portion of the $15,000 would be subject to both HI and OASDI

the entire $15,000 would be subject to HI, but only a portion of the $15,000 would be subject to OASDI

none of the $15,000 is subject to HI or OASDI

the entire $15,000 would be subject to both HI and OASDI

the entire $15,000 would be subject to HI, but none of the $15,000 would be subject to OASDI

they are over age 65

they are over age 67

they collect social security benefits

they write "EXEMPT" on Form W-4

none of the above reasons would exempt an employee from social security tax

Explanation / Answer

Answer :-

(1) Answer :- None of the above reasons would exempt an employee from social security tax.

There are exemption for Social Security Tax are as follows:-

(a) Non resident Person

(b) Limited Income Person

(c) Foreign Govt. Employees

(d) Qualified Religion Places

so, In this question no Employees could take benefit of exemption of Social Security Tax.

(2) Answer:- all of the above situations are exempt from FIT

(3) Answer :- only a portion of the $15,000 would be subject to both HI and OASDI

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