Question 1

For which of the following payments is the employer required to withhold federal income taxes?

Accepted Answer

A) Advances made to sales personnel for traveling expenses 
B) Tipped employee's monthly tips of $120 
C) Deceased person's wages paid to the estate 
D) Minister of Presbyterian church 
E) All of the above 
A) Advances made to sales personnel for traveling expenses 
B) Tipped employee's monthly tips of $120 
C) Deceased person's wages paid to the estate 
D) Minister of Presbyterian church 
E) All of the above

Question 2

Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips?

Accepted Answer

A) Tips amounting to $10 or more in a calendar month must be re- ported by tipped employees to their employers. 
B) The withholding of federal income taxes on employees' reported tip income is made from the amount of tips reported by employees. 
C) When employees report taxable tips in connection with employment in which they also receive regular wages, the amount of tax to be withheld on the tips is computed as if the tips were a supplemental wage payment. 
D) Employers do not withhold FICA taxes on the tipped employees' reported tip income. 
E) None of the above statements is correct. 
A) Tips amounting to $10 or more in a calendar month must be re- ported by tipped employees to their employers. 
B) The withholding of federal income taxes on employees' reported tip income is made from the amount of tips reported by employees. 
C) When employees report taxable tips in connection with employment in which they also receive regular wages, the amount of tax to be withheld on the tips is computed as if the tips were a supplemental wage payment. 
D) Employers do not withhold FICA taxes on the tipped employees' reported tip income. 
E) None of the above statements is correct.

Question 3

Under the federal income tax withholding law, which of the following is not defined as an employee?

Accepted Answer

A) Partner who draws compensation for services rendered the partnership 
B) General manager, age 66 
C) Payroll clerk hired one week ago 
D) Governor of the state of Florida 
E) Secretary employed by a not-for-profit corporation 
A) Partner who draws compensation for services rendered the partnership 
B) General manager, age 66 
C) Payroll clerk hired one week ago 
D) Governor of the state of Florida 
E) Secretary employed by a not-for-profit corporation

Question 4

Since not-for-profit corporations are exempt from federal income taxes, they are not defined as employers under the federal income tax withholding law.

Accepted Answer

A) True 
 B)False

Question 5

After completion of Form W-4, an employer must copy the employee's social security card and place it in the employee's employment file.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following noncash fringe benefits does not represent taxable income subject to federal income tax withholding?

Accepted Answer

A) Flight on employer-provided airline 
B) Personal use of company car 
C) Sick pay 
D) Employer-paid membership to a country club 
E) All of the above are taxable. 
A) Flight on employer-provided airline 
B) Personal use of company car 
C) Sick pay 
D) Employer-paid membership to a country club 
E) All of the above are taxable.

Question 7

There is no limit to the amount that an employer can contribute in an employee's SIMPLE retirement account.

Accepted Answer

A) True 
 B)False

Question 8

An employer is required to submit a copy of the employee's Form W-4 to the IRS if the employee has claimed 15 or more withholding allowances.

Accepted Answer

A) True 
 B)False

Question 9

Evers, who works for two employers, is entitled to three personal allowances.Evers must claim the three allowances with each of the two employers during the entire calendar year.

Accepted Answer

A) True 
 B)False

Question 10

All of the following are properly defined as wages subject to the withholding of federal income taxes except:

Accepted Answer

A) year-end bonus. 
B) kitchen appliances given by manufacturer in lieu of cash wages. 
C) dismissal payment. 
D) vacation pay. 
E) payments made under worker's compensation law. 
A) year-end bonus. 
B) kitchen appliances given by manufacturer in lieu of cash wages. 
C) dismissal payment. 
D) vacation pay. 
E) payments made under worker's compensation law.

For which of the following payments is the employer required to withhold federal income taxes?

Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips?

Under the federal income tax withholding law, which of the following is not defined as an employee?

Since not-for-profit corporations are exempt from federal income taxes, they are not defined as employers under the federal income tax withholding law.

After completion of Form W-4, an employer must copy the employee's social security card and place it in the employee's employment file.

Which of the following noncash fringe benefits does not represent taxable income subject to federal income tax withholding?

There is no limit to the amount that an employer can contribute in an employee's SIMPLE retirement account.

An employer is required to submit a copy of the employee's Form W-4 to the IRS if the employee has claimed 15 or more withholding allowances.

Evers, who works for two employers, is entitled to three personal allowances.Evers must claim the three allowances with each of the two employers during the entire calendar year.

All of the following are properly defined as wages subject to the withholding of federal income taxes except:

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

For which of the following payments is the employer required to withhold federal income taxes?

Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips?

Under the federal income tax withholding law, which of the following is not defined as an employee?

Since not-for-profit corporations are exempt from federal income taxes, they are not defined as employers under the federal income tax withholding law.

After completion of Form W-4, an employer must copy the employee's social security card and place it in the employee's employment file.

Which of the following noncash fringe benefits does not represent taxable income subject to federal income tax withholding?

There is no limit to the amount that an employer can contribute in an employee's SIMPLE retirement account.

An employer is required to submit a copy of the employee's Form W-4 to the IRS if the employee has claimed 15 or more withholding allowances.

Evers, who works for two employers, is entitled to three personal allowances.Evers must claim the three allowances with each of the two employers during the entire calendar year.

All of the following are properly defined as wages subject to the withholding of federal income taxes except:

The Need for Payroll and Personal Records

Computing Wages and Salaries

Social Security Taxes

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters