Question 1

Form W-3 is filed with the Social Security Administration when transmitting information returns on Forms W-2.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

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 5

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 6

An employer must file an information return under all of the following conditions except:

Accepted Answer

A) to report $1,000 of compensation paid to an individual who is not an employee. 
B) to report the wages totaling $600 paid to an independent contractor during the calendar year. 
C) to report dividends totaling $600 paid to an individual during the calendar year. 
D) to report commissions of $500 paid to a self-employed salesman. 
E) An information return must be filed under each of the above conditions. 
A) to report $1,000 of compensation paid to an individual who is not an employee. 
B) to report the wages totaling $600 paid to an independent contractor during the calendar year. 
C) to report dividends totaling $600 paid to an individual during the calendar year. 
D) to report commissions of $500 paid to a self-employed salesman. 
E) An information return must be filed under each of the above conditions.

Question 7

All taxable noncash fringe benefits received during the year can only be added to the employees' taxable pay on the last payday of the year.

Accepted Answer

A) True 
 B)False

Question 8

Noncash fringe benefits that are provided employees are treated as nontaxable income and thus are excluded from federal income tax withholding.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Exhibit 4-1:
Use the following tables to calculate your answers.      
-Refer to Exhibit 4-1.Use the appropriate table to determine the amount to withhold for federal income tax from each wages biweekly withholding allowance = $159.60):

Accepted Answer

$ 49.00a
$ 11.00a
$

Question 11

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 12

Before any federal income taxes may be withheld, there must be, or must have been, an employer-employee relationship.

Accepted Answer

A) True 
 B)False

Question 13

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 14

If you, an employer, are filing 550 Forms W-2, you must use electronic filing rather than paper Forms W-2.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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

Form W-3 is filed with the Social Security Administration when transmitting information returns on Forms W-2.

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

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

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

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

An employer must file an information return under all of the following conditions except:

All taxable noncash fringe benefits received during the year can only be added to the employees' taxable pay on the last payday of the year.

Noncash fringe benefits that are provided employees are treated as nontaxable income and thus are excluded from federal income tax withholding.

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.

Exhibit 4-1: Use the following tables to calculate your answers. -Refer to Exhibit 4-1.Use the appropriate table to determine the amount to withhold for federal income tax from each wages biweekly withholding allowance = $159.60):

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.

Before any federal income taxes may be withheld, there must be, or must have been, an employer-employee relationship.

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.

If you, an employer, are filing 550 Forms W-2, you must use electronic filing rather than paper Forms W-2.

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

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

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters

Exam 4: Income Tax Withholding

Form W-3 is filed with the Social Security Administration when transmitting information returns on Forms W-2.

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

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

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

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

An employer must file an information return under all of the following conditions except:

All taxable noncash fringe benefits received during the year can only be added to the employees' taxable pay on the last payday of the year.

Noncash fringe benefits that are provided employees are treated as nontaxable income and thus are excluded from federal income tax withholding.

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.

Exhibit 4-1: Use the following tables to calculate your answers. -Refer to Exhibit 4-1.Use the appropriate table to determine the amount to withhold for federal income tax from each wages biweekly withholding allowance = $159.60):

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.

Before any federal income taxes may be withheld, there must be, or must have been, an employer-employee relationship.

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.

If you, an employer, are filing 550 Forms W-2, you must use electronic filing rather than paper Forms W-2.

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

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

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters