R6 M3 - Federal Laws & Regulations

Question 1

Federal Unemployment Tax Act (FUTA) are :

Answer 1

is payable by the employer. It is deductible as a business expense. It is not withheld and is not payable on all wages.

Federal unemployment Tax Act only applies to employers who have quarterly payroll of at least $1,500 or employ at least one employee at least one day a week for 20 weeks during a year

Question 2

Unemployment compensation insurance and workers compensation insurance are paid by who:

Answer 2

They are paid by the employer.

Question 3

The federal social security system contains four major benefits programs:

Answer 3

1. (OASI) old age and survivors insurance.
2. (DI) Disability insurance
3. ( Medicare)
4. (SSI) Supplemental security income.

Question 4

Taxes payable under the Federal Unemployment Tax Act (FUTA) are:

A.	Deductible by the employer as a business expense for federal income tax purposes.

B.	Payable by employers for all employees.

C.	Withheld from the wages of all covered employees.

D.	Calculated as a fixed percentage of all compensation paid to an employee.

Answer 4

Choice “A” is correct. Employers can deduct the expense of FUTA as an ordinary business expense.

Choice “B” is incorrect. Casual employers do not have to pay FUTA. An employer has to pay only if at least one employee one day a week for each of 20 weeks in a year is employed.

Choice “C” is incorrect. Unemployment taxes are paid by the employer, not the employee.

Choice “D” is incorrect. There is a maximum amount payable for each employee, so the amount due is not a fixed percentage of all sums paid to employees.

Question 5

The employer that pays the FICA portion of the employee can seek to

• Gift, interest dividends are not wages.

Answer 5

Get reimbursed from the employee or just deduct the expense as a business expense and taxable income for the employee.

Question 6

Federal unemployment Tax Act:

• The unemployment insurance system is administered by the states through their employment laws.
• Unemployment benefits generally are available only when an employee’s job termination was not his or her fault.

Question 7

Workers’ compensation is a state-run program designed to help employees to recover for injuries while on the job. Employers are strictly liable regardless of fault.

Question 8

Workers Compensation Employer in this field are exempt from participating in workers compensation:

• Causal work (Temp Worker)
• Domestic
• Independent contractor -
• Agriculture works
• public employees

Question 9

Affordable Care Act - Employer with 50 or more employees are called applicable large employers.

Employers have to participate and employees

Employers must comply to the ACA. The employer is subject to penalty not the employee.

Answer 9

ACA penalty you must offer coverage to at least 95% of full-time employees and their dependents.

The coverage is not affordable, and the employees get the coverage in the market and get premium tax credits