Question 1

The maximum contribution that an employee (age 40) can make into a 401(k) plan that is not taxed for federal income tax withholding purposes is $25,000.

Accepted Answer

A) True 
 B)False

Question 2

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

Question 3

If married employees do not claim their marital status on Form W-4, the employer must withhold according to the withholding tables for single employees.

Accepted Answer

A) True 
 B)False

Question 4

Employers cannot send Forms W-2 to employees electronically.

Accepted Answer

A) True 
 B)False

Question 5

The withholding on vacation wage payments is

Accepted Answer

A)  a flat 15% 
B)  based on the total amount of the wage payment plus the vacation pay 
C)  taxed as though it were a regular payment for the periods occurring during the vacation period 
D)  tax-free 
E)  a flat 22% 
A)  a flat 15% 
B)  based on the total amount of the wage payment plus the vacation pay 
C)  taxed as though it were a regular payment for the periods occurring during the vacation period 
D)  tax-free 
E)  a flat 22%

Question 6

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 7

When you pay supplemental wages at the same time as regular wages, the method of calculating the withholding is the same for vacation payments as for semiannual bonuses.

Accepted Answer

A) True 
 B)False

Question 8

A waiter receives cash tips amounting to $120 in a month. The waiter must report the amount of the cash tips to the employer by the 10th of the month following the month they receive the tips.

Accepted Answer

A) True 
 B)False

Question 9

Employees who are receiving over $1 million dollars in supplemental wages for the year will have a 37% withholding rate apply to the supplemental payments in excess of $1 million dollars.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following forms is used to report rents paid over $600 to landlords?

Accepted Answer

A)  Form 1099-R 
B)  Form 1099-INT 
C)  Form 1099-MISC 
D)  Form 1099-G 
E)  Form 8027 
A)  Form 1099-R 
B)  Form 1099-INT 
C)  Form 1099-MISC 
D)  Form 1099-G 
E)  Form 8027

Question 11

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 12

A company must withhold federal income taxes from payments made to independent contractors in which of the following cases?

Accepted Answer

A)  When there is a signed contract between the parties. 
B)  When the contractor is paid $400. 
C)  When the contractor is a corporation. 
D)  When the contractor has not provided a taxpayer identification number and the contract is $600 or more. 
E)  All of the above. 
A)  When there is a signed contract between the parties. 
B)  When the contractor is paid $400. 
C)  When the contractor is a corporation. 
D)  When the contractor has not provided a taxpayer identification number and the contract is $600 or more. 
E)  All of the above.

Question 13

All of the following persons are classified as employees under the federal income tax withholding law with the exception of

Accepted Answer

A)  a first-line supervisor 
B)  the president of a corporation 
C)  a partner 
D)  an elected official in the state government 
E)  an officer of the federal government 
A)  a first-line supervisor 
B)  the president of a corporation 
C)  a partner 
D)  an elected official in the state government 
E)  an officer of the federal government

Question 14

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 15

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 of the following biweekly wages (biweekly withholding allowance = $161.50):

Accepted Answer

$ 47.00 ^a $ 9.00 ^a $

Question 16

An employer must withhold federal income taxes on both the tips reported by tipped employees and the tips that the employer allocates to the employees.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Which of the following cannot be included in a cafeteria plan?

Accepted Answer

A)  Health insurance 
B)  Group-term life insurance (first $50,000 of coverage) 
C)  Dependent care assistance (first $5,000) 
D)  Self-insured medical reimbursement plan 
E)  Educational assistance 
A)  Health insurance 
B)  Group-term life insurance (first $50,000 of coverage) 
C)  Dependent care assistance (first $5,000) 
D)  Self-insured medical reimbursement plan 
E)  Educational assistance

Question 19

Contributions made by the employer into employees' health savings accounts are excluded from the employee's taxable income.

Accepted Answer

A) True 
 B)False

Question 20

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

The maximum contribution that an employee (age 40) can make into a 401(k) plan that is not taxed for federal income tax withholding purposes is $25,000.

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

If married employees do not claim their marital status on Form W-4, the employer must withhold according to the withholding tables for single employees.

Employers cannot send Forms W-2 to employees electronically.

The withholding on vacation wage payments is

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.

When you pay supplemental wages at the same time as regular wages, the method of calculating the withholding is the same for vacation payments as for semiannual bonuses.

A waiter receives cash tips amounting to $120 in a month. The waiter must report the amount of the cash tips to the employer by the 10th of the month following the month they receive the tips.

Employees who are receiving over $1 million dollars in supplemental wages for the year will have a 37% withholding rate apply to the supplemental payments in excess of $1 million dollars.

Which of the following forms is used to report rents paid over $600 to landlords?

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.

A company must withhold federal income taxes from payments made to independent contractors in which of the following cases?

All of the following persons are classified as employees under the federal income tax withholding law with the exception of

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

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 of the following biweekly wages (biweekly withholding allowance = $161.50):

An employer must withhold federal income taxes on both the tips reported by tipped employees and the tips that the employer allocates to the employees.

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

Which of the following cannot be included in a cafeteria plan?

Contributions made by the employer into employees' health savings accounts are excluded from the employee's taxable income.

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.

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

The maximum contribution that an employee (age 40) can make into a 401(k) plan that is not taxed for federal income tax withholding purposes is $25,000.

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

If married employees do not claim their marital status on Form W-4, the employer must withhold according to the withholding tables for single employees.

Employers cannot send Forms W-2 to employees electronically.

The withholding on vacation wage payments is

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.

When you pay supplemental wages at the same time as regular wages, the method of calculating the withholding is the same for vacation payments as for semiannual bonuses.

A waiter receives cash tips amounting to $120 in a month. The waiter must report the amount of the cash tips to the employer by the 10th of the month following the month they receive the tips.

Employees who are receiving over $1 million dollars in supplemental wages for the year will have a 37% withholding rate apply to the supplemental payments in excess of $1 million dollars.

Which of the following forms is used to report rents paid over $600 to landlords?

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.

A company must withhold federal income taxes from payments made to independent contractors in which of the following cases?

All of the following persons are classified as employees under the federal income tax withholding law with the exception of

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

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 of the following biweekly wages (biweekly withholding allowance = $161.50):

An employer must withhold federal income taxes on both the tips reported by tipped employees and the tips that the employer allocates to the employees.

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

Which of the following cannot be included in a cafeteria plan?

Contributions made by the employer into employees' health savings accounts are excluded from the employee's taxable income.

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.

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters