Sure Pass Exam FPC-Remote PDF

Cash equivalents, such as gift cards (A), are always taxable income.

Nominal gifts (B, C, D) are generally tax-exempt under de minimis rules.

References:

IRS Publication 15-B (Taxable Fringe Benefits)

As a semiweekly depositor, if the tax liability exceeds $100,000 in a single day, the employer must deposit the full amount by the next business day.

The combined liability of $169,200 must be deposited on Monday.

References:

IRS Publication 15 (Federal Deposit Rules)

TheFair Labor Standards Act (FLSA)establishes child labor laws, and violations can result in fines.

As of recent updates, the penalty for a willful violation of child labor laws is $13,227.00(adjusted annually).

If serious injury or death occurs, penaltiesincrease significantly.

References:

FLSA Child Labor Penalty Guidelines (DOL)

Wage and Hour Division (DOL)

Step 1: Determine taxable wages

Regular wages:$2,000.00

Shift differential:$1,000.00

Total taxable wages = $3,000.00(Non-taxable tuition reimbursement and travel are excluded.)

Step 2: Calculate Social Security tax

$3,000 × 6.2% = $186.00 (Employer portion)

Step 3: Calculate Medicare tax

$3,000 × 1.45% = $43.50 (Employer portion)

Step 4: Total employer FICA tax

Social Security + Medicare = $186.00 + $43.50 = $229.50

Employer’s share = $229.50 × 2 = $459.00

References:

IRS Publication 15 (Employer’s Tax Guide)

Social Security and Medicare Tax Rates (IRS)