Question 1

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 2

Instruction 5-1 
Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. 
Refer to Instruction 5-1 . Hunter Company had a FUTA taxable payroll of $192,700 for the year. Since the company is located in a state that has 1.5% FUTA credit reduction due to unpaid loans, determine Hunter's FUTA tax liability for the year.

Accepted Answer

[$192,700

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

On Form 940, even if the total FUTA tax is more than $500, there is no listing of quarterly federal unemployment tax liabilities.

Accepted Answer

A) True 
 B)False

Question 6

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 7

In most states, the contribution reports and the wage information reports are filed quarterly.

Accepted Answer

A) True 
 B)False

Question 8

In the case of a part-time employee, the employer is not liable to pay any of the employee's earnings.

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

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

Truson Company paid a 4% SUTA tax on the taxable wages of $108,500.  The taxable wages under FUTA were $89,400. What was the net FUTA tax of Truson Company?

Accepted Answer

The answer of Truson Company paid a 4% SUTA tax...

Question 14

If an employer pays a SUTA tax of 2.0%, the total credit that can be claimed against the FUTA tax is 2.0%.

Accepted Answer

A) True 
 B)False

Question 15

Instruction 5-1 
Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. 
Refer to Instruction 5-1 . Queno Company had FUTA taxable wages of $510,900 during the year. Determine its:

Accepted Answer

The answer of Instruction 5-1 
Use the net FUTA tax...

Question 16

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 17

Which of the following provides for a reduction in the employer's state unemployment tax rate based on the employer's experience with the risk of unemployment?

Accepted Answer

A)  Voluntary contribution 
B)  Title XII advances 
C)  Pooled-fund laws 
D)  Experience-rating plan 
E)  None of the above 
A)  Voluntary contribution 
B)  Title XII advances 
C)  Pooled-fund laws 
D)  Experience-rating plan 
E)  None of the above

Question 18

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

Question 19

Instruction 5-1 
Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. 
Refer to Instruction 5-1 . Faruga Company had FUTA taxable payrolls for the four quarters of $38,400; $29,600; $16,500; and $8,900, respectively. What was the amount of Faruga's first required  deposit of FUTA taxes?

Accepted Answer

The answer of Instruction 5-1 
Use the net FUTA tax...

Question 20

Educational assistance payments to workers are considered nontaxable wages for unemployment purposes.

Accepted Answer

A) True 
 B)False

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

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

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

On Form 940, even if the total FUTA tax is more than $500, there is no listing of quarterly federal unemployment tax liabilities.

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

In most states, the contribution reports and the wage information reports are filed quarterly.

In the case of a part-time employee, the employer is not liable to pay any of the employee's earnings.

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.

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

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.

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

Truson Company paid a 4% SUTA tax on the taxable wages of $108,500. The taxable wages under FUTA were $89,400. What was the net FUTA tax of Truson Company?

If an employer pays a SUTA tax of 2.0%, the total credit that can be claimed against the FUTA tax is 2.0%.

Instruction 5-1 Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Refer to Instruction 5-1 . Queno Company had FUTA taxable wages of $510,900 during the year. Determine its:

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

Which of the following provides for a reduction in the employer's state unemployment tax rate based on the employer's experience with the risk of unemployment?

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

Educational assistance payments to workers are considered nontaxable wages for unemployment purposes.

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

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

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

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

On Form 940, even if the total FUTA tax is more than $500, there is no listing of quarterly federal unemployment tax liabilities.

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

In most states, the contribution reports and the wage information reports are filed quarterly.

In the case of a part-time employee, the employer is not liable to pay any of the employee's earnings.

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.

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

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.

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

Truson Company paid a 4% SUTA tax on the taxable wages of $108,500. The taxable wages under FUTA were $89,400. What was the net FUTA tax of Truson Company?

If an employer pays a SUTA tax of 2.0%, the total credit that can be claimed against the FUTA tax is 2.0%.

Instruction 5-1 Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Refer to Instruction 5-1 . Queno Company had FUTA taxable wages of $510,900 during the year. Determine its:

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

Which of the following provides for a reduction in the employer's state unemployment tax rate based on the employer's experience with the risk of unemployment?

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

Educational assistance payments to workers are considered nontaxable wages for unemployment purposes.

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Analyzing and Journalizing Payroll

Filters