Question 1

The amount of federal income taxes to be withheld is determined after subtracting from the employee's gross wages any local and state taxes.

Accepted Answer

A) True 
 B)False

Question 2

An employer must withhold federal income taxes on both the tips reported by tipped employees and the tips that the employer allocates to the employees.

Accepted Answer

A) True 
 B)False

Question 3

Gere became the father of triplets on June 20.He must file an amended Form W-4 on or before June 30.

Accepted Answer

A) True 
 B)False

Question 4

The withholding of federal income and FICA taxes from a tipped employee is made from the employee's wages that are under the employer's control.

Accepted Answer

A) True 
 B)False

Question 5

In the case of a 401(k) plan, employees age 50 or over can shelter an extra $10,000 of their wages from federal income tax.

Accepted Answer

A) True 
 B)False

Question 6

If married employees do not claim their marital status on Form W-4, the employer must withhold according to the withholding tables for single employees.

Accepted Answer

A) True 
 B)False

Question 7

Under the federal income tax withholding law, a definition of employee excludes partners.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following forms is used to report rents paid over $600 to landlords?

Accepted Answer

A) Form 1099-R 
B) Form 1099-INT 
C) Form 1099-MISC 
D) Form 1099-G 
E) Form 8027 
A) Form 1099-R 
B) Form 1099-INT 
C) Form 1099-MISC 
D) Form 1099-G 
E) Form 8027

Question 9

A personal allowance:

Accepted Answer

A) amounted to $2,000 in 2016. 
B) may be claimed to exempt a portion of the employee's earnings from withholding. 
C) is indexed for inflation every calendar quarter. 
D) may be claimed at the same time with each employer for whom an employee is working during the year. 
E) for one person is a different amount for a single versus a married taxpayer. 
A) amounted to $2,000 in 2016. 
B) may be claimed to exempt a portion of the employee's earnings from withholding. 
C) is indexed for inflation every calendar quarter. 
D) may be claimed at the same time with each employer for whom an employee is working during the year. 
E) for one person is a different amount for a single versus a married taxpayer.

Question 10

Cash tips of $20 or more received by a tipped employee in a calendar month are treated as remuneration subject to federal income tax withholding.

Accepted Answer

A) True 
 B)False

Question 11

Of the two main methods of withholding, only the wage-bracket method distinguishes unmarried persons from married persons.

Accepted Answer

A) True 
 B)False

Question 12

Persons eligible for deductible IRA contributions may put aside a specified amount of their compensation without paying federal income taxes on that amount.

Accepted Answer

A) True 
 B)False

Question 13

When you pay supplemental wages at the same time as regular wages, the method of calculating the withholding is the same for vacation payments as for semiannual bonuses.

Accepted Answer

A) True 
 B)False

Question 14

The payments to a cook employed by a college fraternity are excluded from federal income tax withholding.

Accepted Answer

A) True 
 B)False

Question 15

A person holding two jobs may have additional income tax withheld by increasing the number of withholding allowances claimed.

Accepted Answer

A) True 
 B)False

Question 16

An employee submits an invalid Form W-4 to the employer and does not replace it with a valid form.The employer should withhold federal income taxes at the rate for a single person claiming no exemptions.

Accepted Answer

A) True 
 B)False

Question 17

To curb the practice of employees filing false Forms W-4, the IRS requires that an employer submit to the agency a copy of each Form W-4:

Accepted Answer

A) the IRS has requested in writing. 
B) on which an employee, usually earning $180 each week at the time Form W-4 was filed, now claims to be exempt from withholding. 
C) on which an employee claims to be single but has 9 withholding allowances. 
D) on which a married employee claims no withholding allowances. 
E) on which a recently divorced employee claims 5 withholding allowances and authorizes an additional $10 to be withheld each week. 
A) the IRS has requested in writing. 
B) on which an employee, usually earning $180 each week at the time Form W-4 was filed, now claims to be exempt from withholding. 
C) on which an employee claims to be single but has 9 withholding allowances. 
D) on which a married employee claims no withholding allowances. 
E) on which a recently divorced employee claims 5 withholding allowances and authorizes an additional $10 to be withheld each week.

Question 18

Beech refuses to state her marital status on Form W-4 which she gave to you, the payroll manager, when she was hired.You should:

Accepted Answer

A) tell Beech that it is OK since you know that she was recently divorced and is reluctant to talk about it. 
B) inform Beech that she will have to write the IRS and give her reasons for refusing to state her marital status. 
C) tell Beech that you will have to withhold income taxes as if she were married and had claimed one allowance. 
D) tell Beech that you will have to withhold income taxes according to the withholding table for a single employee with no allowances. 
E) advise Beech to write "It is no business of yours." in the margin of her Form W-4. 
A) tell Beech that it is OK since you know that she was recently divorced and is reluctant to talk about it. 
B) inform Beech that she will have to write the IRS and give her reasons for refusing to state her marital status. 
C) tell Beech that you will have to withhold income taxes as if she were married and had claimed one allowance. 
D) tell Beech that you will have to withhold income taxes according to the withholding table for a single employee with no allowances. 
E) advise Beech to write "It is no business of yours." in the margin of her Form W-4.

Question 19

Employees must be given Form W-2 on or before January 31 following the close of the calendar year.

Accepted Answer

A) True 
 B)False

Question 20

A waiter receives cash tips amounting to $120 in a month.The waiter must report the amount of the cash tips to the employer by the 10th of the month following the month they receive the tips.

Accepted Answer

A) True 
 B)False

The amount of federal income taxes to be withheld is determined after subtracting from the employee's gross wages any local and state taxes.

An employer must withhold federal income taxes on both the tips reported by tipped employees and the tips that the employer allocates to the employees.

Gere became the father of triplets on June 20.He must file an amended Form W-4 on or before June 30.

The withholding of federal income and FICA taxes from a tipped employee is made from the employee's wages that are under the employer's control.

In the case of a 401(k) plan, employees age 50 or over can shelter an extra $10,000 of their wages from federal income tax.

If married employees do not claim their marital status on Form W-4, the employer must withhold according to the withholding tables for single employees.

Under the federal income tax withholding law, a definition of employee excludes partners.

Which of the following forms is used to report rents paid over $600 to landlords?

A personal allowance:

Cash tips of $20 or more received by a tipped employee in a calendar month are treated as remuneration subject to federal income tax withholding.

Of the two main methods of withholding, only the wage-bracket method distinguishes unmarried persons from married persons.

Persons eligible for deductible IRA contributions may put aside a specified amount of their compensation without paying federal income taxes on that amount.

When you pay supplemental wages at the same time as regular wages, the method of calculating the withholding is the same for vacation payments as for semiannual bonuses.

The payments to a cook employed by a college fraternity are excluded from federal income tax withholding.

A person holding two jobs may have additional income tax withheld by increasing the number of withholding allowances claimed.

An employee submits an invalid Form W-4 to the employer and does not replace it with a valid form.The employer should withhold federal income taxes at the rate for a single person claiming no exemptions.

To curb the practice of employees filing false Forms W-4, the IRS requires that an employer submit to the agency a copy of each Form W-4:

Beech refuses to state her marital status on Form W-4 which she gave to you, the payroll manager, when she was hired.You should:

Employees must be given Form W-2 on or before January 31 following the close of the calendar year.

A waiter receives cash tips amounting to $120 in a month.The waiter must report the amount of the cash tips to the employer by the 10th of the month following the month they receive the tips.

The Need for Payroll and Personal Records

Computing Wages and Salaries

Social Security Taxes

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters

Exam 4: Income Tax Withholding

The amount of federal income taxes to be withheld is determined after subtracting from the employee's gross wages any local and state taxes.

An employer must withhold federal income taxes on both the tips reported by tipped employees and the tips that the employer allocates to the employees.

Gere became the father of triplets on June 20.He must file an amended Form W-4 on or before June 30.

The withholding of federal income and FICA taxes from a tipped employee is made from the employee's wages that are under the employer's control.

In the case of a 401(k) plan, employees age 50 or over can shelter an extra $10,000 of their wages from federal income tax.

If married employees do not claim their marital status on Form W-4, the employer must withhold according to the withholding tables for single employees.

Under the federal income tax withholding law, a definition of employee excludes partners.

Which of the following forms is used to report rents paid over $600 to landlords?

A personal allowance:

Cash tips of $20 or more received by a tipped employee in a calendar month are treated as remuneration subject to federal income tax withholding.

Of the two main methods of withholding, only the wage-bracket method distinguishes unmarried persons from married persons.

Persons eligible for deductible IRA contributions may put aside a specified amount of their compensation without paying federal income taxes on that amount.

When you pay supplemental wages at the same time as regular wages, the method of calculating the withholding is the same for vacation payments as for semiannual bonuses.

The payments to a cook employed by a college fraternity are excluded from federal income tax withholding.

A person holding two jobs may have additional income tax withheld by increasing the number of withholding allowances claimed.

An employee submits an invalid Form W-4 to the employer and does not replace it with a valid form.The employer should withhold federal income taxes at the rate for a single person claiming no exemptions.

To curb the practice of employees filing false Forms W-4, the IRS requires that an employer submit to the agency a copy of each Form W-4:

Beech refuses to state her marital status on Form W-4 which she gave to you, the payroll manager, when she was hired.You should:

Employees must be given Form W-2 on or before January 31 following the close of the calendar year.

A waiter receives cash tips amounting to $120 in a month.The waiter must report the amount of the cash tips to the employer by the 10th of the month following the month they receive the tips.

The Need for Payroll and Personal Records

Computing Wages and Salaries

Social Security Taxes

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters