Exam 9: Withholding, Estimated Payments, and Payroll Taxes

The Pear Corporation pays its employees every 2 weeks. During the look-back period, in each pay period the total withholding and FICA tax (employees' and employer's share) amounted to $750. How often must the Pear Corporation deposit payroll taxes?

Gordon is 60 years old and Mary is 55 years old. They are married with three dependent children over age 17, and Gordon has one job. Assuming that Mary is unemployed, how many allowances should Gordon claim on his Form W-4, assuming no extra allowances for deductions or adjustments?

Which of the following taxpayers are not required to make estimated payments?

A credit against the FUTA tax is available for state unemployment tax paid by the employer.

Dividends paid to a shareholder by a corporation should be reported on which of the following forms?

If an employee does not complete a Form W-4, the employer must withhold tax as if the employee were single with no exemptions.

The Foemina Corporation has two employees, Nancy and Penny. a.If Nancy earns wages of $17,000 for 2015, calculate the total amount of the FICA tax that must be paid: by Nancy by Foemina Corporation Total b.If Penny earns wages of $120,000 for 2015, calculate the total amount of the FICA tax that must be paid: by Penny by Foemina Corporation Total

What is the purpose of backup withholding?

Redford's salary was $124,000 in 2015. What would his total combined FICA tax (OASDI & Medicare) withheld from his salary be for the year?

Peter and Joan are married and Joan has self-employment income of $240,000. Peter is retired. How much additional 0.9% Medicare surtax will Peter and Joan owe with their 2015 income tax return? ​

Sally is an employer with one employee, Sara. Sara earned $12,000 from January 1, 2015 through June 30, 2015, and the state unemployment tax rate is 5.4 percent. Calculate the following amount for Sally. a.FUTA tax after the state tax credit b.What form should Sally use to report her FUTA tax liability for 2015?

In 2015, Willow Corporation had three employees. Two of the employees worked full-time and earned salaries of $25,000 each. The third employee worked only part-time and earned $4,000. The employer timely paid state unemployment tax equal to 5.4 percent of each employee's wages up to $7,000. How much FUTA tax is due from Willow Corporation for 2015, after the credit for state unemployment taxes?

Janet is single and claims two allowances on her Form W-4. Her salary is $1,800 per month. a.Use the percentage method to calculate the amount of Janet's withholding for a monthly pay period. b.Use the withholding tables to determine the amount of Janet's withholding for a monthly pay period.

Individual quarterly estimated tax payments are filed with Form 1040-ES.

Which one of the following payroll tax deposit schedules is not a rule that applies for a class of employers?

Richard is employed by a major defense contractor and earns $156,000 in 2015. Calculate: a.The amount of Social Security tax withheld from his income b.The amount of Medicare tax withheld from his income c.The amount of FUTA withheld from his income

Mary is self-employed for 2015. Mary estimates her required annual estimated tax payment for 2015 to be $4,000. Mary had a $500 overpayment of last year's taxes which she will apply against her first quarter estimated payment. a.How much should Mary pay with her first quarter estimated tax voucher? b.When is the payment due?

If an individual taxpayer discovers that his or her original estimate for estimated tax payments was inaccurate, the taxpayer should continue to make payments based on the original estimate and pay any additional amount or request any refund when the tax return is filed.

Which one of the following forms must an employer provide to his employee by January 31 of the following year?

Dividend income is not subject to the self-employment tax.