Publication 5258 - Federal Tax Deposits Page 25
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32ansWer key for praCtiCal
exerCises
practical exercise 1, page 6
1.
The correct answer is E, A and C
A. Withheld income taxes are taken out of employees’ paychecks and held
in trust to be turned over to the United States Treasury. This is only part of
the correct answer.
B. Employer’s portion of FICA (social security and Medicare) tax is not taken
out of employees’ paychecks. It is an additional cost of having employees,
but is not a trust fund tax.
C. Employee’s portion of FICA tax has been withheld from the employee’s
paycheck, and is held in trust to be turned over to the Treasury. This is only
part of the correct answer.
D. A and B are incorrect because the employer’s portion of FICA tax is not a
trust fund tax.
E. A and C are correct because withheld income taxes and the employee’s
portion of FICA tax are taken out of employee’s paychecks and held in
trust until they are turned over to the United States Treasury.
F. B and C are not correct because the employer’s portion of FICA tax is not a
trust fund tax.
2.
The correct answer is D, since the trust fund deposits are actually money with-
held from the employee’s paycheck.
practical exercise 2, page 12
Quarter
Total Taxes from Form 941
a
3
Q
2015
+
$8,000
rd
uarter
B
4
Q
2015
+
$8,500
th
uarter
C
1
Q
2016
+
$9,000
st
uarter
D
2
Q
2016
+
$9,090
nd
uarter
E
Total Tax in lookback Period
A + B + C + D
=
$34,590
1.
The lookback period for 2017 is the 12-month period from July 1, 2015
through June 30, 2016. Add up the taxes reported on Forms 941
for the third and fourth quarters of 2015 and the first and second quarters
of 2016.
25
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