Exam 9: Withholding, Estimated Payments, and Payroll Taxes

For each of the following payments, indicate the form (Form W-2, W-4, W-2G, 1099-B, 1099-DIV, 1099-INT, 1099-MISC, or 1099-R) that should be used to report the payment. a.Dividends from a mutual fund b.Las Vegas gambling winnings c.Interest paid by a bank d.Payment of salary and commissions to an employee e.Distribution from an IRA account

(Essay)

4.9/5

(80)

Question 41

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 unemployment tax was paid to the state from Willow Corporation for 2015?

(Multiple Choice)

4.7/5

(88)

Question 42

Melody and Todd are married and have employee wages of $250,000 each in 2015. They have no other income. How much additional 0.9% Medicare surtax will Melody and Todd have to pay or receive as a refund when they file their 2015 income tax return?

(Multiple Choice)

4.9/5

(74)

Question 43

Payors are not required to use backup withholding if:

(Multiple Choice)

4.9/5

(77)

Question 44

A nondeductible penalty is imposed on underpayments of estimated taxes.

(True/False)

4.9/5

(72)

Question 45

In determining an employee's FICA tax to be withheld, the maximum amount of wages subject to FICA must be reduced by the taxpayer's self-employment earnings.

(True/False)

4.9/5

(84)

Question 46

The two most common methods of determining federal income tax withholding are the percentage method and the wage bracket method.

(True/False)

5.0/5

(81)

Question 47

The FUTA tax is a voluntary unemployment tax which an employer may or may not wish to contribute towards.

(True/False)

4.8/5

(73)

Question 48

Gambling winnings must be reported to the IRS, but withholding of taxes on winnings is never required.

(True/False)

4.9/5

(82)

Question 49

Form 1099-DIV is an information return used to show the payment of:

(Multiple Choice)

4.9/5

(82)

Question 50

Which of the following forms should be used by a company to report a payment of $1,500 to a computer consultant who is not an employee of the company?

(Multiple Choice)

5.0/5

(82)

Question 51

The FUTA tax is paid by:

(Multiple Choice)

4.8/5

(72)

Question 52

Oliver has two employees who earned the following amounts during 2015: If Oliver timely pays 5.4 percent for state unemployment tax, what is the amount of his 2015 FUTA after the state tax credit?

(Multiple Choice)

4.9/5

(77)

Question 53

Household employers are not required to pay FICA taxes on cash payments of less than $1,900 paid to any household employee in a calendar year.

(True/False)

4.8/5

(90)

Question 54

Taxpayers with large amounts of deductions may claim extra withholding allowances on their Form W-4s.

(True/False)

4.9/5

(74)

Question 55

Which of the following statements about the FICA tax is not true?

(Multiple Choice)

4.7/5

(79)

Question 56

The original copy of all W-2 Forms and Form W-3 must be filed with the Social Security Administration by February 28 of the year following the calendar year in which the wages were paid, regardless of the tax year of the employer.

(True/False)

4.9/5

(79)

Question 57

Mark the incorrect answer. Estimated income tax payments:

(Multiple Choice)

4.9/5

(97)

Question 58

An individual who expects to receive more than $500 of income from sources other than wages meets the requirements for having to file quarterly estimated tax payments.

(True/False)

4.8/5

(78)

Question 59

Mike is a single taxpayer. For the payroll period of November 2015, he is paid wages of $3,400, monthly. Mike claims three allowances on his Form W-4. a.Use the percentage method to calculate the amount of Mike's withholding for a monthly pay period. b.Use the withholding tables to determine the amount of Mike's withholding for the same period.

(Essay)

4.7/5

(95)

Question 60

Showing 41 - 60 of 82

Melody and Todd are married and have employee wages of $250,000 each in 2015. They have no other income. How much additional 0.9% Medicare surtax will Melody and Todd have to pay or receive as a refund when they file their 2015 income tax return?

Payors are not required to use backup withholding if:

A nondeductible penalty is imposed on underpayments of estimated taxes.

In determining an employee's FICA tax to be withheld, the maximum amount of wages subject to FICA must be reduced by the taxpayer's self-employment earnings.

The two most common methods of determining federal income tax withholding are the percentage method and the wage bracket method.

The FUTA tax is a voluntary unemployment tax which an employer may or may not wish to contribute towards.

Gambling winnings must be reported to the IRS, but withholding of taxes on winnings is never required.

Form 1099-DIV is an information return used to show the payment of:

Which of the following forms should be used by a company to report a payment of $1,500 to a computer consultant who is not an employee of the company?

The FUTA tax is paid by:

Oliver has two employees who earned the following amounts during 2015: If Oliver timely pays 5.4 percent for state unemployment tax, what is the amount of his 2015 FUTA after the state tax credit?

Household employers are not required to pay FICA taxes on cash payments of less than $1,900 paid to any household employee in a calendar year.

Taxpayers with large amounts of deductions may claim extra withholding allowances on their Form W-4s.

Which of the following statements about the FICA tax is not true?

The original copy of all W-2 Forms and Form W-3 must be filed with the Social Security Administration by February 28 of the year following the calendar year in which the wages were paid, regardless of the tax year of the employer.

Mark the incorrect answer. Estimated income tax payments:

An individual who expects to receive more than $500 of income from sources other than wages meets the requirements for having to file quarterly estimated tax payments.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 9: Withholding, Estimated Payments, and Payroll Taxes

Melody and Todd are married and have employee wages of $250,000 each in 2015. They have no other income. How much additional 0.9% Medicare surtax will Melody and Todd have to pay or receive as a refund when they file their 2015 income tax return? ​

Payors are not required to use backup withholding if:

A nondeductible penalty is imposed on underpayments of estimated taxes.

In determining an employee's FICA tax to be withheld, the maximum amount of wages subject to FICA must be reduced by the taxpayer's self-employment earnings.

The two most common methods of determining federal income tax withholding are the percentage method and the wage bracket method.

The FUTA tax is a voluntary unemployment tax which an employer may or may not wish to contribute towards.

Gambling winnings must be reported to the IRS, but withholding of taxes on winnings is never required.

Form 1099-DIV is an information return used to show the payment of:

Which of the following forms should be used by a company to report a payment of $1,500 to a computer consultant who is not an employee of the company?

The FUTA tax is paid by:

Oliver has two employees who earned the following amounts during 2015: If Oliver timely pays 5.4 percent for state unemployment tax, what is the amount of his 2015 FUTA after the state tax credit?

Household employers are not required to pay FICA taxes on cash payments of less than $1,900 paid to any household employee in a calendar year.

Taxpayers with large amounts of deductions may claim extra withholding allowances on their Form W-4s.

Which of the following statements about the FICA tax is not true?

The original copy of all W-2 Forms and Form W-3 must be filed with the Social Security Administration by February 28 of the year following the calendar year in which the wages were paid, regardless of the tax year of the employer.

Mark the incorrect answer. Estimated income tax payments:

An individual who expects to receive more than $500 of income from sources other than wages meets the requirements for having to file quarterly estimated tax payments.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Melody and Todd are married and have employee wages of $250,000 each in 2015. They have no other income. How much additional 0.9% Medicare surtax will Melody and Todd have to pay or receive as a refund when they file their 2015 income tax return?