Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

FUTA and SUTA coverages extend to U.S.citizens working abroad for American employers.

Accepted Answer

A) True 
 B)False

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

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.

Question 6

An employer can use a credit card to pay the quarterly deposit of FUTA taxes during the year.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Even if a state repays its Title XII advances, all employers in that state are subject to a credit reduction in the year of the advance.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) $3,000. 
B) $500. 
C) $1,000. 
D) $1. 
E) $100. 
A) $3,000. 
B) $500. 
C) $1,000. 
D) $1. 
E) $100.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) Retirement pay 
B) Cash prizes and awards for doing outstanding work 
C) Dismissal pay 
D) Bonuses as remuneration for services 
E) Payment under a guaranteed annual wage plan 
A) Retirement pay 
B) Cash prizes and awards for doing outstanding work 
C) Dismissal pay 
D) Bonuses as remuneration for services 
E) Payment under a guaranteed annual wage plan

Question 16

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 17

Voluntary contributions to a state's unemployment department are:

Accepted Answer

A) allowed in all states. 
B) designed to increase an employer's reserve account in order to lower the employer's contribution rate. 
C) capable of being paid at any time with no time limit. 
D) returned to the employer at the end of the following year. 
E) sent directly to the IRS. 
A) allowed in all states. 
B) designed to increase an employer's reserve account in order to lower the employer's contribution rate. 
C) capable of being paid at any time with no time limit. 
D) returned to the employer at the end of the following year. 
E) sent directly to the IRS.

Question 18

Once a company attains the status of employer for FUTA purposes, that status continues for four calendar years.

Accepted Answer

A) True 
 B)False

Question 19

Christmas gifts, excluding noncash gifts of nominal value, are taxable wages for unemployment purposes.

Accepted Answer

A) True 
 B)False

Question 20

If the employer is tardy in paying the state contributions, the credit against the federal tax is limited to what percent of the late payments that would have been allowed as a credit if the contributions had been paid on time?

Accepted Answer

A) 6.2% 
B) 90% 
C) 5.13% 
D) 20% 
E) 0% 
A) 6.2% 
B) 90% 
C) 5.13% 
D) 20% 
E) 0%

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

FUTA and SUTA coverages extend to U.S.citizens working abroad for American employers.

A federal unemployment tax is levied on:

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

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

An employer can use a credit card to pay the quarterly deposit of FUTA taxes during the year.

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

Even if a state repays its Title XII advances, all employers in that state are subject to a credit reduction in the year of the advance.

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

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

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

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

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

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

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

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

Voluntary contributions to a state's unemployment department are:

Once a company attains the status of employer for FUTA purposes, that status continues for four calendar years.

Christmas gifts, excluding noncash gifts of nominal value, are taxable wages for unemployment purposes.

If the employer is tardy in paying the state contributions, the credit against the federal tax is limited to what percent of the late payments that would have been allowed as a credit if the contributions had been paid on time?

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

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

FUTA and SUTA coverages extend to U.S.citizens working abroad for American employers.

A federal unemployment tax is levied on:

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

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

An employer can use a credit card to pay the quarterly deposit of FUTA taxes during the year.

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

Even if a state repays its Title XII advances, all employers in that state are subject to a credit reduction in the year of the advance.

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

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

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

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

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

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

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

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

Voluntary contributions to a state's unemployment department are:

Once a company attains the status of employer for FUTA purposes, that status continues for four calendar years.

Christmas gifts, excluding noncash gifts of nominal value, are taxable wages for unemployment purposes.

If the employer is tardy in paying the state contributions, the credit against the federal tax is limited to what percent of the late payments that would have been allowed as a credit if the contributions had been paid on time?

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Analyzing and Journalizing Payroll

Filters