CSLB Contractor's Law & Business Practice Exam

How often are FICA taxes reported and paid?

1. Monthly

2. Quarterly

3. Annually

4. Weekly

The correct answer is: Quarterly

FICA taxes, which include Social Security and Medicare taxes, are generally reported and paid on a quarterly basis for most employers. This means businesses must submit their payroll tax reports and make payment to the IRS every three months. Quarterly reporting aligns with the requirement for employers to file Form 941, which reports income taxes, Social Security tax, and Medicare tax withheld by employers from employee wages. Certain small businesses with a lower volume of payroll taxes may have the option to report and pay annually, but this is less common and typically applies to those who owe less than $1,000 in taxes during the year. Similarly, businesses with a larger payroll might need to make these payments more frequently, such as on a monthly basis, depending on their tax liability. Weekly payments are generally not required unless specifically indicated by the IRS for certain conditions. Therefore, quarterly reporting represents the standard practice for most employers handling FICA taxes.