Business FinancesQuestion 288 of 690
How frequently a contractor must deposit withheld federal payroll taxes with the IRS is determined primarily by:
a.The number of CSLB licenses the contractor holds
b.The type of construction work performed
c.The county where the business is located
d.The amount of the employer's payroll tax liability
Explanation
The IRS sets a deposit schedule (typically monthly or semiweekly) based on the employer's total payroll tax liability during a lookback period. Larger liabilities require more frequent deposits.
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Related questions on this topic
- Which payroll tax is paid entirely by the EMPLOYER and never withheld from an employee's wages?
- A contractor classifies an independent subcontractor as an employee by mistake (or the reverse). The MOST significant financial risk of misclassifying a worker is:
- A self-employed contractor operating as a sole proprietor with no withholding generally must make federal income tax payments to the IRS:
- Under the cash basis of accounting, a contractor records revenue when:
- Which accounting method records revenue when it is EARNED and expenses when they are INCURRED, even if no cash has changed hands?
- Which financial statement reports a contractor's revenue and expenses over a period of time and shows the net profit or loss?
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