Question 1

Currently, none of the states imposes an unemployment tax on employees.

Accepted Answer

A) True 
 B)False  False

Question 2

If an employee has more than one employer during the current year, the taxable wage base applies separately to each of those employers, unless one employer has transferred the business to the second.

Accepted Answer

A) True 
 B)False  True

Question 3

The person who is not an authorized signer of Form 940 is:

Accepted Answer

A)  the individual, if a sole proprietorship. 
B)  the accountant from the company's independent auditing firm. 
C)  the president, if a corporation. 
D)  a fiduciary, if a trust. 
E)  All of the above are authorized signers. 
A)  the individual, if a sole proprietorship. 
B)  the accountant from the company's independent auditing firm. 
C)  the president, if a corporation. 
D)  a fiduciary, if a trust. 
E)  All of the above are authorized signers. B

Question 4

If an employer is subject to a credit reduction because of Title XII advances, the penalty for the entire year will be paid only with the deposit for the last quarter of the year.

Accepted Answer

A) True 
 B)False

Question 5

The mailing of Form 940 is considered timely if it is postmarked on or before the due date.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

In the case of a part-time employee, the employer pays a FUTA tax on only the first $3,500 of earnings (one-half the regular limit).

Accepted Answer

A) True 
 B)False

Question 8

In some states, employers may obtain reduced unemployment compensation rates by making voluntary contributions to the state fund.

Accepted Answer

A) True 
 B)False

Question 9

Unlike Form 941, there is no penalty for the late filing of Form 940.

Accepted Answer

A) True 
 B)False

Question 10

For FUTA purposes, an employer must pay a higher FUTA tax rate on executives than on nonsupervisory personnel.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following provides for a reduction in the employer's state unemployment tax rate based on the employer's experience with the risk of unemployment?

Accepted Answer

A)  Voluntary contribution 
B)  Title XII advances 
C)  Pooled-fund laws 
D)  Experience-rating plan 
E)  None of the above 
A)  Voluntary contribution 
B)  Title XII advances 
C)  Pooled-fund laws 
D)  Experience-rating plan 
E)  None of the above

Question 12

If an employee works in more than one state, the employer must pay a separate SUTA tax to each of those states in which the employee earns wages.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following payments are taxable payments for federal unemployment tax?

Accepted Answer

A)  Christmas gifts, excluding noncash gifts of nominal value 
B)  Caddy fees 
C)  Courtesy discounts to employees and their families 
D)  Workers' compensation payments 
E)  Value of meals and lodging furnished employees for the convenience of the employer 
A)  Christmas gifts, excluding noncash gifts of nominal value 
B)  Caddy fees 
C)  Courtesy discounts to employees and their families 
D)  Workers' compensation payments 
E)  Value of meals and lodging furnished employees for the convenience of the employer

Question 14

"Dumping" is legal in all but a few states.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Every employer is entitled to a 5.4 percent credit against the gross FUTA tax of 6.0 percent.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  December 31. 
B)  February 15. 
C)  February 10. 
D)  February 1. 
E)  March 31. 
A)  December 31. 
B)  February 15. 
C)  February 10. 
D)  February 1. 
E)  March 31.

Question 18

A federal unemployment tax is levied on:

Accepted Answer

A)  employees only. 
B)  both employers and employees. 
C)  employers only. 
D)  government employers only. 
E)  no one. 
A)  employees only. 
B)  both employers and employees. 
C)  employers only. 
D)  government employers only. 
E)  no one.

Question 19

For FUTA purposes, an employer can be any one of the following except:

Accepted Answer

A)  an individual. 
B)  a partnership. 
C)  a trust. 
D)  a corporation. 
E)  All of the above can be employers. 
A)  an individual. 
B)  a partnership. 
C)  a trust. 
D)  a corporation. 
E)  All of the above can be employers.

Question 20

FUTA tax deposits cannot be paid electronically.

Accepted Answer

A) True 
 B)False

Currently, none of the states imposes an unemployment tax on employees.

If an employee has more than one employer during the current year, the taxable wage base applies separately to each of those employers, unless one employer has transferred the business to the second.

The person who is not an authorized signer of Form 940 is:

If an employer is subject to a credit reduction because of Title XII advances, the penalty for the entire year will be paid only with the deposit for the last quarter of the year.

The mailing of Form 940 is considered timely if it is postmarked on or before the due date.

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

In the case of a part-time employee, the employer pays a FUTA tax on only the first $3,500 of earnings (one-half the regular limit).

In some states, employers may obtain reduced unemployment compensation rates by making voluntary contributions to the state fund.

Unlike Form 941, there is no penalty for the late filing of Form 940.

For FUTA purposes, an employer must pay a higher FUTA tax rate on executives than on nonsupervisory personnel.

Which of the following provides for a reduction in the employer's state unemployment tax rate based on the employer's experience with the risk of unemployment?

If an employee works in more than one state, the employer must pay a separate SUTA tax to each of those states in which the employee earns wages.

Which of the following payments are taxable payments for federal unemployment tax?

"Dumping" is legal in all but a few states.

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

Every employer is entitled to a 5.4 percent credit against the gross FUTA tax of 6.0 percent.

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

A federal unemployment tax is levied on:

For FUTA purposes, an employer can be any one of the following except:

FUTA tax deposits cannot be paid electronically.

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Analyzing and Journalizing Payroll Transactions

Filters

Exam 5: Unemployment Compensation Taxes

Currently, none of the states imposes an unemployment tax on employees.

If an employee has more than one employer during the current year, the taxable wage base applies separately to each of those employers, unless one employer has transferred the business to the second.

The person who is not an authorized signer of Form 940 is:

If an employer is subject to a credit reduction because of Title XII advances, the penalty for the entire year will be paid only with the deposit for the last quarter of the year.

The mailing of Form 940 is considered timely if it is postmarked on or before the due date.

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

In the case of a part-time employee, the employer pays a FUTA tax on only the first $3,500 of earnings (one-half the regular limit).

In some states, employers may obtain reduced unemployment compensation rates by making voluntary contributions to the state fund.

Unlike Form 941, there is no penalty for the late filing of Form 940.

For FUTA purposes, an employer must pay a higher FUTA tax rate on executives than on nonsupervisory personnel.

Which of the following provides for a reduction in the employer's state unemployment tax rate based on the employer's experience with the risk of unemployment?

If an employee works in more than one state, the employer must pay a separate SUTA tax to each of those states in which the employee earns wages.

Which of the following payments are taxable payments for federal unemployment tax?

"Dumping" is legal in all but a few states.

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

Every employer is entitled to a 5.4 percent credit against the gross FUTA tax of 6.0 percent.

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

A federal unemployment tax is levied on:

For FUTA purposes, an employer can be any one of the following except:

FUTA tax deposits cannot be paid electronically.

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Analyzing and Journalizing Payroll Transactions

Filters