Question 1

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

Accepted Answer

A) The FICA tax is composed of two parts,Social Security and Medicare. 
B) Self-employed individuals may elect to pay either FICA taxes or self-employment taxes. 
C) FICA taxes are paid by both the employees and their employers. 
D) The income amount subject to FICA tax has increased significantly over the years. 
E) Wages subject to FICA tax that are received by a self-employed individual reduce the individual's maximum self-employment tax base. 
A) The FICA tax is composed of two parts,Social Security and Medicare. 
B) Self-employed individuals may elect to pay either FICA taxes or self-employment taxes. 
C) FICA taxes are paid by both the employees and their employers. 
D) The income amount subject to FICA tax has increased significantly over the years. 
E) Wages subject to FICA tax that are received by a self-employed individual reduce the individual's maximum self-employment tax base. B

Question 2

Sally is an employer with one employee,Sara.Sara earned $12,000 from January 1,2013 through June 30,2013,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 2013?

Accepted Answer

^a.$42 = $7,000 *0.6% b.Form 940

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

Mary is self-employed for 2013.Mary estimates her required annual estimated tax payment for 2013 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?

Accepted Answer

a.$500 = $

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 2013 income tax return?

Accepted Answer

A) $360 
B) $2,160 
C) $0 
D) They will receive a $90 refund 
A) $360 
B) $2,160 
C) $0 
D) They will receive a $90 refund

Question 7

If a husband and wife both work,they must divide their withholding allowances equally on their W-4 Forms.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) 1099-INT 
B) 1099-DIV 
C) 1099-MISC 
D) 1099-R 
E) None of the above 
A) 1099-INT 
B) 1099-DIV 
C) 1099-MISC 
D) 1099-R 
E) None of the above

Question 9

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?

Accepted Answer

a.Form W-2
b.In general,the employer mus

Question 10

Mike is a single taxpayer.For the payroll period of November 2013,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.

Accepted Answer

<sup>a.</sup><sup> <

Question 11

Oliver has two employees who earned the following amounts during 2013: $$\begin{array} { l l } 
\text { June } & \$ 17,000 \
\text { Eric } & \$ 5,000
\end{array}$$ If Oliver timely pays 5.4 percent for state unemployment tax,what is the amount of his 2013 FUTA after the state tax credit?

Accepted Answer

A) $0 
B) $72 
C) $112 
D) $176 
E) None of the above 
A) $0 
B) $72 
C) $112 
D) $176 
E) None of the above

Question 12

Which of the following forms is used by an employer to report quarterly wages and federal payroll tax withholdings and deposits?

Accepted Answer

A) Form 940 
B) Form 941 
C) Form 1099 
D) Form W-2 
E) None of the above 
A) Form 940 
B) Form 941 
C) Form 1099 
D) Form W-2 
E) None of the above

Question 13

The Foemina Corporation has two employees,Nancy and Penny.
a.If Nancy earns wages of $17,000 for 2013,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 2013,calculate the total amount of the FICA tax that must be paid:
by Penny
by Foemina Corporation Total

Accepted Answer

The answer of The Foemina Corporation has two employees,Nancy and...

Question 14

Household employers are not required to pay FICA taxes on cash payments of less than $1,800 paid to any household employee in a calendar year.

Accepted Answer

A) True 
 B)False

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

Emily is a self-employed attorney during 2013.
a.Assuming that Emily earns $20,000 from her practice,calculate the total amount of her self- employment tax liability for 2013.
b.Assuming that Emily earns $125,000 from her practice,calculate the total amount of her self- employment tax liability for 2013.

Accepted Answer

a.$2,825.91 = $20,000 x 0.9235

Question 18

For 2013,the maximum base for the Social Security portion of the FICA tax is:

Accepted Answer

A) $135,000 
B) $113,700 
C) $87,900 
D) $84,000 
E) None of the above 
A) $135,000 
B) $113,700 
C) $87,900 
D) $84,000 
E) None of the above

Question 19

Redford's salary was $123,000 in 2013.What would his total combined FICA tax OASDI & Medicare)withheld from his salary be for the year?

Accepted Answer

A) $8,833 
B) $9,410 
C) $8,610 
D) $10,000 
E) None of the above is correct 
A) $8,833 
B) $9,410 
C) $8,610 
D) $10,000 
E) None of the above is correct

Question 20

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

Accepted Answer

A) W-3 
B) W-2 
C) W-4 
D) 941 
E) 1040 
A) W-3 
B) W-2 
C) W-4 
D) 941 
E) 1040

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

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

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

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 2013 income tax return?

If a husband and wife both work,they must divide their withholding allowances equally on their W-4 Forms.

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

Oliver has two employees who earned the following amounts during 2013: June \ 17,000 Eric \ 5,000 If Oliver timely pays 5.4 percent for state unemployment tax,what is the amount of his 2013 FUTA after the state tax credit?

Which of the following forms is used by an employer to report quarterly wages and federal payroll tax withholdings and deposits?

Household employers are not required to pay FICA taxes on cash payments of less than $1,800 paid to any household employee in a calendar year.

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.

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.

For 2013,the maximum base for the Social Security portion of the FICA tax is:

Redford's salary was $123,000 in 2013.What would his total combined FICA tax OASDI & Medicare)withheld from his salary be for the year?

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

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

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

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

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

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 2013 income tax return?

If a husband and wife both work,they must divide their withholding allowances equally on their W-4 Forms.

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

Oliver has two employees who earned the following amounts during 2013: June \ 17,000 Eric \ 5,000 If Oliver timely pays 5.4 percent for state unemployment tax,what is the amount of his 2013 FUTA after the state tax credit?

Which of the following forms is used by an employer to report quarterly wages and federal payroll tax withholdings and deposits?

Household employers are not required to pay FICA taxes on cash payments of less than $1,800 paid to any household employee in a calendar year.

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.

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.

For 2013,the maximum base for the Social Security portion of the FICA tax is:

Redford's salary was $123,000 in 2013.What would his total combined FICA tax OASDI & Medicare)withheld from his salary be for the year?

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

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