Exam 9: Withholding, Estimated Payments, and Payroll Taxes

Elwin worked at three jobs during 2015. He earned $30,000, $27,000, and $9,000, respectively, from the jobs. What amount can Elwin apply as a credit against his 2015 income tax liability for overpayment of FICA taxes?

Elwin worked at three jobs during 2015. He earned $30,000, $27,000, and $9,000, respectively, from the jobs. What is the total amount of FICA tax that would have been withheld from Elwin's wages?

For 2015, the maximum base amount for computing the Medicare portion of the self-employment tax is $150,000.

Which of the following amounts paid by an employer to an employee is not subject to withholding?

Employers must provide employees with their Form W-2s by February 15th of the year following the calendar year of payment of the wages.

Employer deposits of withheld taxes may be made to any bank.

Mark has two jobs during 2015. One employer withheld and paid FICA taxes on $70,200 of Mark's salary and the other employer withheld and paid FICA taxes on $48,800 in salary paid to Mark. Calculate the amount of Mark's credit for the overpayment of FICA taxes that he should claim on his 2015 Form 1040.

Employees with self-employment income who also have W-2 wage income may be able to avoid making estimated tax payments by filing a Form W-4 and increasing the amount of their withholding.

Which of the following items may be subject to the self-employment tax?

The FUTA tax for 2015 is based on 6.2 percent of each employee's wages up to $10,000.

Emily is a self-employed attorney. a.​ Assuming that Emily earns $20,000 from her practice, calculate the total amount of her self-employment tax liability for 2015. b.​ Assuming that Emily earns $135,000 from her practice, calculate the total amount of her self-employment tax liability for 2015.

Mark the correct answer. FICA taxes are:

Steve is a single man who lives by himself. He has one job as a computer technician. How many withholding allowances can he claim?

In 2015, the maximum amount of wages subject to the Social Security portion of the FICA tax is $118,500.

For purposes of the new additional 0.9% Medicare surtax on earned income, a single taxpayer having earned income of more than $200,000 is generally subject to the tax.

Mark the correct answer. Self-employment taxes:

Provide answers to the following questions: a.What form does an employer use to report wages to an employee? b.When must the employer give this form to the employee? c.What form does an employer use to report wages to the Social Security Administration? d.When must the employer file the form with the Social Security Administration?

Marty earned $5,000 in interest income from the Honey Springs Bank. She failed to notify the bank that she was not subject to backup withholding. a.If Marty's taxable income puts her in the 25 percent bracket, how much would Honey Springs Bank withhold on the $5,000 of interest earnings? b.If Marty's taxable income puts her in the 15 percent bracket, how much would Honey Springs Bank withhold on the $5,000 of interest earnings?

When required, gambling winnings are reported by the gambling establishment on Form 1099-MISC.

The Wash Your Paws Self-Service Dog Wash, a California business, had two employees during the year. Lindsey worked from January through March 15 and earned $2,750. Avery worked for the whole year and earned $20,000. The State of California assesses unemployment tax at the rate of 5.4 percent. Calculate the total FUTA tax after the credit for the state unemployment tax.