Question 1

Employers must submit Forms W-4 to the IRS for

Accepted Answer

A)  all Forms W-4 
B)  those claiming more than 10 allowances 
C)  all Forms W-4 claiming exemption 
D)  those requested in writing by the IRS 
E)  those requesting additional amounts to be withheld 
A)  all Forms W-4 
B)  those claiming more than 10 allowances 
C)  all Forms W-4 claiming exemption 
D)  those requested in writing by the IRS 
E)  those requesting additional amounts to be withheld

Question 2

A publisher is preparing information returns to report the royalties paid to authors (nonemployees) during the prior calendar year. The proper information return to be completed is

Accepted Answer

A)  Form W-2 
B)  Form W-3 
C)  Form 1099-MISC 
D)  Form 1099-DIV 
E)  any of the above forms 
A)  Form W-2 
B)  Form W-3 
C)  Form 1099-MISC 
D)  Form 1099-DIV 
E)  any of the above forms

Question 3

There is no limit to the amount of educational assistance that is exempt from federal income tax withholdings.

Accepted Answer

A) True 
 B)False

Question 4

Unmarried persons are distinguished from married persons under both the percentage method and the wage-bracket method of withholding.

Accepted Answer

A) True 
 B)False

Question 5

The standard deduction varies according to whether the wage-bracket method or the percentage method is used.

Accepted Answer

A) True 
 B)False

Question 6

The payments to a cook employed by a college fraternity are excluded from federal income tax withholding.

Accepted Answer

A) True 
 B)False

Question 7

Exhibit 4-1 : Use the following tables to calculate your answers.         Refer to Exhibit 4-1 . Calculate the amount to withhold from the following employees using the biweekly table of the percentage method.

Accepted Answer

$  63.04<sup>a</sup>

Question 8

All of the following are properly defined as wages subject to the withholding of federal income taxes except :

Accepted Answer

A)  a year-end bonus. 
B)  kitchen appliances given by manufacturer in lieu of cash wages. 
C)  dismissal payment. 
D)  vacation pay. 
E)  payments made under workers' compensation law. 
A)  a year-end bonus. 
B)  kitchen appliances given by manufacturer in lieu of cash wages. 
C)  dismissal payment. 
D)  vacation pay. 
E)  payments made under workers' compensation law.

Question 9

In the IRA form of a simple retirement account, employer's can contribute as much as they want into the employee's simple retirement account, even though the employee's contribution is limited to $13,000.

Accepted Answer

A) True 
 B)False

Question 10

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 11

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 12

Exhibit 4-1 : Use the following tables to calculate your answers.         Refer to Exhibit 4-1 . Determine the income tax to withhold from the biweekly wages of the following employees (wage-bracket):

Accepted Answer

$83.00 
$

Question 13

A sole proprietor with two employees is exempt from the requirements of the federal income tax withholding law.

Accepted Answer

A) True 
 B)False

Question 14

An employer is required to submit a copy of the employee's Form W-4 to the IRS if the employee has claimed 15 or more withholding allowances.

Accepted Answer

A) True 
 B)False

Question 15

In the IRA form of the Simple Retirement Account, employers must match the employee's contribution, dollar-for-dollar, up to 3 percent of the employee's compensation.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips?

Accepted Answer

A)  Tips amounting to $10 or more in a calendar month must be reported by tipped employees to their employers. 
B)  The withholding of federal income taxes on employees' reported tip income is made from the amount of tips reported by employees. 
C)  When employees report taxable tips in connection with employment in which they also receive regular wages, the amount of tax to be withheld on the tips is computed as if the tips were a supplemental wage payment. 
D)  Employers do not withhold FICA taxes on the tipped employees' reported tip income. 
E)  None of the above statements is correct. 
A)  Tips amounting to $10 or more in a calendar month must be reported by tipped employees to their employers. 
B)  The withholding of federal income taxes on employees' reported tip income is made from the amount of tips reported by employees. 
C)  When employees report taxable tips in connection with employment in which they also receive regular wages, the amount of tax to be withheld on the tips is computed as if the tips were a supplemental wage payment. 
D)  Employers do not withhold FICA taxes on the tipped employees' reported tip income. 
E)  None of the above statements is correct.

Question 17

The special withholding allowance may be claimed only by those employees who do not itemize deductions on their income tax returns.

Accepted Answer

A) True 
 B)False

Question 18

Evers, who works for two employers, is entitled to three personal allowances. Evers must claim the three allowances with each of the two employers during the entire calendar year.

Accepted Answer

A) True 
 B)False

Question 19

Under the federal income tax withholding law, which of the following is not defined as an employee ?

Accepted Answer

A)  Partner who draws compensation for services rendered the partnership 
B)  General manager, age 66 
C)  Payroll clerk hired one week ago 
D)  Governor of the state of Florida 
E)  Secretary employed by a not-for-profit corporation 
A)  Partner who draws compensation for services rendered the partnership 
B)  General manager, age 66 
C)  Payroll clerk hired one week ago 
D)  Governor of the state of Florida 
E)  Secretary employed by a not-for-profit corporation

Question 20

Since not-for-profit corporations are exempt from federal income taxes, they are not defined as employers under the federal income tax withholding law.

Accepted Answer

A) True 
 B)False

Employers must submit Forms W-4 to the IRS for

A publisher is preparing information returns to report the royalties paid to authors (nonemployees) during the prior calendar year. The proper information return to be completed is

There is no limit to the amount of educational assistance that is exempt from federal income tax withholdings.

Unmarried persons are distinguished from married persons under both the percentage method and the wage-bracket method of withholding.

The standard deduction varies according to whether the wage-bracket method or the percentage method is used.

The payments to a cook employed by a college fraternity are excluded from federal income tax withholding.

Exhibit 4-1 : Use the following tables to calculate your answers. Refer to Exhibit 4-1 . Calculate the amount to withhold from the following employees using the biweekly table of the percentage method.

All of the following are properly defined as wages subject to the withholding of federal income taxes except :

In the IRA form of a simple retirement account, employer's can contribute as much as they want into the employee's simple retirement account, even though the employee's contribution is limited to $13,000.

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

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

Exhibit 4-1 : Use the following tables to calculate your answers. Refer to Exhibit 4-1 . Determine the income tax to withhold from the biweekly wages of the following employees (wage-bracket):

A sole proprietor with two employees is exempt from the requirements of the federal income tax withholding law.

An employer is required to submit a copy of the employee's Form W-4 to the IRS if the employee has claimed 15 or more withholding allowances.

In the IRA form of the Simple Retirement Account, employers must match the employee's contribution, dollar-for-dollar, up to 3 percent of the employee's compensation.

Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips?

The special withholding allowance may be claimed only by those employees who do not itemize deductions on their income tax returns.

Evers, who works for two employers, is entitled to three personal allowances. Evers must claim the three allowances with each of the two employers during the entire calendar year.

Under the federal income tax withholding law, which of the following is not defined as an employee ?

Since not-for-profit corporations are exempt from federal income taxes, they are not defined as employers under the federal income tax withholding law.

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

Employers must submit Forms W-4 to the IRS for

A publisher is preparing information returns to report the royalties paid to authors (nonemployees) during the prior calendar year. The proper information return to be completed is

There is no limit to the amount of educational assistance that is exempt from federal income tax withholdings.

Unmarried persons are distinguished from married persons under both the percentage method and the wage-bracket method of withholding.

The standard deduction varies according to whether the wage-bracket method or the percentage method is used.

The payments to a cook employed by a college fraternity are excluded from federal income tax withholding.

Exhibit 4-1 : Use the following tables to calculate your answers. Refer to Exhibit 4-1 . Calculate the amount to withhold from the following employees using the biweekly table of the percentage method.

All of the following are properly defined as wages subject to the withholding of federal income taxes except :

In the IRA form of a simple retirement account, employer's can contribute as much as they want into the employee's simple retirement account, even though the employee's contribution is limited to $13,000.

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

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

Exhibit 4-1 : Use the following tables to calculate your answers. Refer to Exhibit 4-1 . Determine the income tax to withhold from the biweekly wages of the following employees (wage-bracket):

A sole proprietor with two employees is exempt from the requirements of the federal income tax withholding law.

An employer is required to submit a copy of the employee's Form W-4 to the IRS if the employee has claimed 15 or more withholding allowances.

In the IRA form of the Simple Retirement Account, employers must match the employee's contribution, dollar-for-dollar, up to 3 percent of the employee's compensation.

Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips?

The special withholding allowance may be claimed only by those employees who do not itemize deductions on their income tax returns.

Evers, who works for two employers, is entitled to three personal allowances. Evers must claim the three allowances with each of the two employers during the entire calendar year.

Under the federal income tax withholding law, which of the following is not defined as an employee ?

Since not-for-profit corporations are exempt from federal income taxes, they are not defined as employers under the federal income tax withholding law.

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters