Question

Under the Federal Insurance Contributions Act (FICA), which of the following acts will cause an employer to be liable for penalties?
Failure to Supply Taxpayer Identification Numbers (Y/N?)
Failure to Make Timely FICA Deposits (Y/N?)

Answer 1

Answer:

Both:

• Failure to Supply Taxpayer Identification Numbers
• Failure to Make Timely FICA Deposits

Explanation:

The tax identification number for an individual (employee) is his/he social security number. It is illegal to hire someone that doesn't have a valid social security number. So whenever an employer is paying FICA taxes (or withholding them from an employee), the employer must provide the social security number of the employees. It is like writing down the names of the employees, you have to do it.

If you do not pay your taxes on time, you will be fined and penalized, and they will charge you interests. If you keep insisting in not paying, you might end up in jail. That applies to all federal taxes, the IRS doesn't like to lose.