Utah Contractor Practice Exam 2026 – All-In-One Guide to Master Your Contractor Exam Success!

Question: 1 / 770

What consequence does a contractor face for failing to report FICA taxes?

Immediate suspension of license

Fines and penalties

A contractor who fails to report FICA taxes faces fines and penalties because the Federal Insurance Contributions Act (FICA) requires employers to withhold certain taxes from their employees' wages and also to contribute their share. When a contractor neglects this responsibility, it does not only affect their compliance with federal law but also impacts the funding for vital social programs like Social Security and Medicare.

The penalties for failing to report or pay FICA taxes can include monetary fines imposed by the IRS, interest on unpaid taxes, and potential legal ramifications for tax evasion. These consequences serve as a deterrent to ensure that all contractors adhere to tax regulations, thereby maintaining the integrity of the tax system. By managing tax obligations properly, contractors can avoid these financial repercussions and ensure continued lawful operations.

Get further explanation with Examzify DeepDiveBeta

No consequences

Nobody is affected

Next Question

Report this question

Download Utah Contractor Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy