Question 1

In order to avoid a credit reduction for Title XII advances, a state must repay the loans by:

Accepted Answer

A) the end of the year of the loans. 
B) the end of the year the credit reduction is scheduled to take effect. 
C) the end of the third year after the year of the loans. 
D) November 10 of the year the credit reduction is scheduled to take effect. 
E) June 30 of the year after the loans. 
A) the end of the year of the loans. 
B) the end of the year the credit reduction is scheduled to take effect. 
C) the end of the third year after the year of the loans. 
D) November 10 of the year the credit reduction is scheduled to take effect. 
E) June 30 of the year after the loans. D

Question 2

Schedule A of Form 940 only has to be completed by employers who are subject to the Title XII credit reduction.

Accepted Answer

A) True 
 B)False  False

Question 3

In order to obtain the maximum credit allowed against the federal unemployment tax, the employer must have paid its SUTA contributions by the due date of Form 940.

Accepted Answer

A) True 
 B)False  True

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

If an employer's quarterly tax liability is $525, it must be paid on or before the last day of the month following the end of the quarter.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Included under the definition of employees for FUTA purposes are:

Accepted Answer

A) independent contractors. 
B) insurance agents paid solely on commission. 
C) student nurses. 
D) officers of a corporation. 
E) members of partnerships. 
A) independent contractors. 
B) insurance agents paid solely on commission. 
C) student nurses. 
D) officers of a corporation. 
E) members of partnerships.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

FUTA tax deposits cannot be paid electronically.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

If a company is liable for a credit reduction due to Title XII advance), this extra tax must be paid along with each of the required deposits made during the year.

Accepted Answer

A) True 
 B)False

Question 16

Services performed in the employ of a religious organization that is exempt from federal income tax are also exempt from FUTA coverage.

Accepted Answer

A) True 
 B)False

Question 17

For FUTA purposes, the cash value of remuneration paid in any medium other than cash is not considered taxable wages.

Accepted Answer

A) True 
 B)False

Question 18

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 19

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 20

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

Accepted Answer

A) True 
 B)False

In order to avoid a credit reduction for Title XII advances, a state must repay the loans by:

Schedule A of Form 940 only has to be completed by employers who are subject to the Title XII credit reduction.

In order to obtain the maximum credit allowed against the federal unemployment tax, the employer must have paid its SUTA contributions by the due date of Form 940.

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

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

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

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

If an employer's quarterly tax liability is $525, it must be paid on or before the last day of the month following the end of the quarter.

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

Included under the definition of employees for FUTA purposes are:

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

FUTA tax deposits cannot be paid electronically.

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

If a company is liable for a credit reduction due to Title XII advance), this extra tax must be paid along with each of the required deposits made during the year.

Services performed in the employ of a religious organization that is exempt from federal income tax are also exempt from FUTA coverage.

For FUTA purposes, the cash value of remuneration paid in any medium other than cash is not considered taxable wages.

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?

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

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Analyzing and Journalizing Payroll

Filters

Exam 5: Unemployment Compensation Taxes

In order to avoid a credit reduction for Title XII advances, a state must repay the loans by:

Schedule A of Form 940 only has to be completed by employers who are subject to the Title XII credit reduction.

In order to obtain the maximum credit allowed against the federal unemployment tax, the employer must have paid its SUTA contributions by the due date of Form 940.

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

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

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

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

If an employer's quarterly tax liability is $525, it must be paid on or before the last day of the month following the end of the quarter.

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

Included under the definition of employees for FUTA purposes are:

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

FUTA tax deposits cannot be paid electronically.

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

If a company is liable for a credit reduction due to Title XII advance), this extra tax must be paid along with each of the required deposits made during the year.

Services performed in the employ of a religious organization that is exempt from federal income tax are also exempt from FUTA coverage.

For FUTA purposes, the cash value of remuneration paid in any medium other than cash is not considered taxable wages.

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?

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

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Analyzing and Journalizing Payroll

Filters