Florida General Contractor Practice Exam

What is the primary function of form 8109?

1. To report employee salaries

2. To deposit federal taxes

3. To track construction expenses

4. To file annual income statements

The correct answer is: To deposit federal taxes

The primary function of form 8109 is to deposit federal taxes. This form is specifically designed for employers to deposit federal payroll taxes, including income tax withheld from employees and the employer’s portion of Social Security and Medicare taxes. When businesses or contractors pay their employees, they are responsible for withholding certain amounts from their paychecks for federal taxes. Form 8109 facilitates the timely and accurate deposit of these withheld amounts, ensuring compliance with federal tax regulations. This form is essentially part of the routine tax management process for employers, making it crucial for maintaining proper fiscal responsibility and adherence to federal tax law. Other options, such as reporting employee salaries or filing annual income statements, do not pertain to form 8109’s design or purpose. Tracking construction expenses, while important in the contracting business, is unrelated to the function of this specific form, which is focused on tax deposits rather than financial record-keeping or profit-and-loss assessments.