Question 1

Mark the incorrect answer.Estimated income tax payments:

Accepted Answer

A) Need not be filed if the estimated tax,after subtracting withholding,can reasonably be expected to be more than $1,000. 
B) If inadequate,may result in nondeductible penalties. 
C) May be based on the amount of the tax liability for the prior year. 
D) Are made in four installments on April 15,June 15,and September 15 of the tax year and on January 15 of the following year. 
A) Need not be filed if the estimated tax,after subtracting withholding,can reasonably be expected to be more than $1,000. 
B) If inadequate,may result in nondeductible penalties. 
C) May be based on the amount of the tax liability for the prior year. 
D) Are made in four installments on April 15,June 15,and September 15 of the tax year and on January 15 of the following year.

Question 2

Payors are not required to use backup withholding if:

Accepted Answer

A) The taxpayer did not give the payor his or her taxpayer identification number. 
B) The taxpayer certifies that he or she is not subject to backup withholding. 
C) The IRS informs the payor that the taxpayer gave an incorrect identification number. 
D) The IRS informs the payor to start withholding because the taxpayer has not reported the income on his or her tax return. 
A) The taxpayer did not give the payor his or her taxpayer identification number. 
B) The taxpayer certifies that he or she is not subject to backup withholding. 
C) The IRS informs the payor that the taxpayer gave an incorrect identification number. 
D) The IRS informs the payor to start withholding because the taxpayer has not reported the income on his or her tax return.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

An employee is reimbursed for travel and other ordinary and necessary expenses.Under what circumstances would income tax be withheld from the employee on these amounts?

Accepted Answer

Reimbursements of travel and other emplo

Question 5

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.

Accepted Answer

A) True 
 B)False

Question 6

George has four employees who earned $75,000,$27,000,$2,100,and $6,200 during 2013,respectively.He paid 5.4 percent for state unemployment tax.How much FUTA tax will George owe for the four employees?

Accepted Answer

A) $133.80 
B) $882.40 
C) $321.60 
D) $224.00 
E) $163.70 
A) $133.80 
B) $882.40 
C) $321.60 
D) $224.00 
E) $163.70

Question 7

What percentage of gross food and beverage sales is used in determining the amount of tips that an employer must report as allocated to employees?

Accepted Answer

A) 8 percent 
B) 10 percent 
C) 12 percent 
D) 15 percent 
E) None of the above 
A) 8 percent 
B) 10 percent 
C) 12 percent 
D) 15 percent 
E) None of the above

Question 8

Tom had net earnings of $80,000 from the plant nursery he owns.What is his liability for FICA taxes on his earnings?

Accepted Answer

Tom's liability is $

Question 9

Mark the correct answer.Self-employment taxes:

Accepted Answer

A) Consist of a Medicare tax and a Social Security tax. 
B) Are not affected by wages the taxpayer earns as an employee. 
C) Apply to taxpayers with less than $400 in self-employment earnings. 
D) Are calculated based on unearned income such as interest and dividends as well as net earnings from self-employment. 
A) Consist of a Medicare tax and a Social Security tax. 
B) Are not affected by wages the taxpayer earns as an employee. 
C) Apply to taxpayers with less than $400 in self-employment earnings. 
D) Are calculated based on unearned income such as interest and dividends as well as net earnings from self-employment.

Question 10

The FUTA tax for 2013 is based on 6.2 percent of each employee's wages up to $10,000.

Accepted Answer

A) True 
 B)False

Question 11

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.

Accepted Answer

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

Question 12

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?

Accepted Answer

A) Annually 
B) Monthly 
C) Quarterly 
D) Daily 
E) None of the above 
A) Annually 
B) Monthly 
C) Quarterly 
D) Daily 
E) None of the above

Question 13

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.

Accepted Answer

The answer of The Wash Your Paws Self-Service Dog Wash,a...

Question 14

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?

Accepted Answer

A) Five 
B) Six 
C) Seven 
D) Eight 
E) Nine 
A) Five 
B) Six 
C) Seven 
D) Eight 
E) Nine

Question 15

For 2013,Randy,an unmarried taxpayer,has wages of $45,000.He has a significant amount of income from dividends and interest and therefore expects to have a federal income tax liability of $18,000.His total federal income tax withholding for the year is $9,500.Randy had $100,000 of adjusted gross income and a federal tax liability of $11,000 on his 2012 return.To avoid a penalty for underpayment of estimated taxes,what is the minimum amount of total estimated tax that Randy must pay in 2013? Assume the payments are made on a timely basis.

Accepted Answer

$1,500 = Lesser of $1,500,$11,

Question 16

A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee in all but one of the following situations.In which situation would this not be required?

Accepted Answer

A) A nanny who earns $22,000 a year 
B) A baby-sitter who earns $1,300 a year 
C) A cook who is paid $35,000 a year 
D) A cleaning lady who is paid $8,000 a year 
E) The taxpayer would not have to pay Social Security and Medicare taxes in any of the above situations 
A) A nanny who earns $22,000 a year 
B) A baby-sitter who earns $1,300 a year 
C) A cook who is paid $35,000 a year 
D) A cleaning lady who is paid $8,000 a year 
E) The taxpayer would not have to pay Social Security and Medicare taxes in any of the above situations

Question 17

Elwin worked at three jobs during 2013.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?

Accepted Answer

A) $4,054.80 
B) $4,092.00 
C) $5,003.10 
D) $5,049.00 
E) None of the above 
A) $4,054.80 
B) $4,092.00 
C) $5,003.10 
D) $5,049.00 
E) None of the above

Question 18

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

Accepted Answer

a.1099-DIV

Question 19

For purposes of the new additional 0.9% Medicare surtax on earned income,a single taxpayer earning more than $200,000 is defined as a "high-income" taxpayer.

Accepted Answer

A) True 
 B)False

Question 20

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?

Accepted Answer

A) Form 1099-INT 
B) Form W-4 
C) Form W-2 
D) Form 1099-DIV 
E) Form 1099-MISC 
A) Form 1099-INT 
B) Form W-4 
C) Form W-2 
D) Form 1099-DIV 
E) Form 1099-MISC

Mark the incorrect answer.Estimated income tax payments:

Payors are not required to use backup withholding if:

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

An employee is reimbursed for travel and other ordinary and necessary expenses.Under what circumstances would income tax be withheld from the employee on these amounts?

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.

George has four employees who earned $75,000,$27,000,$2,100,and $6,200 during 2013,respectively.He paid 5.4 percent for state unemployment tax.How much FUTA tax will George owe for the four employees?

What percentage of gross food and beverage sales is used in determining the amount of tips that an employer must report as allocated to employees?

Tom had net earnings of $80,000 from the plant nursery he owns.What is his liability for FICA taxes on his earnings?

Mark the correct answer.Self-employment taxes:

The FUTA tax for 2013 is based on 6.2 percent of each employee's wages up to $10,000.

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.

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?

A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee in all but one of the following situations.In which situation would this not be required?

Elwin worked at three jobs during 2013.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 purposes of the new additional 0.9% Medicare surtax on earned income,a single taxpayer earning more than $200,000 is defined as a "high-income" taxpayer.

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 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

Mark the incorrect answer.Estimated income tax payments:

Payors are not required to use backup withholding if:

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

An employee is reimbursed for travel and other ordinary and necessary expenses.Under what circumstances would income tax be withheld from the employee on these amounts?

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.

George has four employees who earned $75,000,$27,000,$2,100,and $6,200 during 2013,respectively.He paid 5.4 percent for state unemployment tax.How much FUTA tax will George owe for the four employees?

What percentage of gross food and beverage sales is used in determining the amount of tips that an employer must report as allocated to employees?

Tom had net earnings of $80,000 from the plant nursery he owns.What is his liability for FICA taxes on his earnings?

Mark the correct answer.Self-employment taxes:

The FUTA tax for 2013 is based on 6.2 percent of each employee's wages up to $10,000.

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.

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?

A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee in all but one of the following situations.In which situation would this not be required?

Elwin worked at three jobs during 2013.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 purposes of the new additional 0.9% Medicare surtax on earned income,a single taxpayer earning more than $200,000 is defined as a "high-income" taxpayer.

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 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