Exam 5: Unemployment Compensation Taxes

A federal unemployment tax is levied on:

A traveling salesperson who solicits and transmits to the principal orders for merchandise for resale is considered an employee under FUTA.

The Social Security Act ordered every state to set up an unemployment compensation program.

Insurance agents paid solely on a commission basis are not considered employees under FUTA.

Retirement pay is taxable wages for FUTA purposes.

Which of the following types of payments are not taxable wages for federal unemployment tax?

Services performed by a child under the age of 21 for a parent-employer are excluded from FUTA coverage.

Unemployment taxes (FUTA and SUTA) do not have to be paid by an employer who has only part-time employees.

Which of the following is not a factor considered in determining coverage of interstate employees?

Advance payments for work done in the future are not taxable wages for FUTA purposes.

Voluntary contributions to a state's unemployment department are:

If the employer has made timely deposits that pay the FUTA tax liability in full, the filing of Form 940 can be delayed until:

Educational assistance payments made to workers to improve skills required of their jobs are nontaxable for unemployment purposes.

There is a uniform rate of unemployment benefits payable by all states.

Even if the duties of depositing the FUTA taxes and filing Form 940 have been outsourced, the employer is still the responsible party.

Even if a state repays its

If an employer pays unemployment taxes to two states, it will have the same SUTA tax rate in both states.

Form 940 must be mailed to the IRS by January 15.

An employer must pay the quarterly FUTA tax liability if the liability is more than:

Directors of corporations who only attend and participate in board of directors' meetings are not covered as employees under FUTA.