Question 1

For the purpose of the FUTA tax, members of partnerships are considered employees.

Accepted Answer

A) True 
 B)False

Question 2

Retirement pay is taxable wages for FUTA purposes.

Accepted Answer

A) True 
 B)False

Question 3

If all wages were excluded from SUTA taxes, but were subjected to FUTA, the FUTA tax rate would be 6.0%.

Accepted Answer

A) True 
 B)False

Question 4

The location of the employee's residence is the primary factor to be considered in determining coverage of an employee who works in more than one state.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

If an employer's FUTA tax liability for the 1st quarter is $935, no payment is required for the 1st quarter.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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 10

An aspect of the interstate reciprocal arrangement concerns:

Accepted Answer

A)  the status of Americans working overseas. 
B)  the taxability of dismissal payments. 
C)  the determination of an employer's experience rating. 
D)  the transfer of an employee from one state to another during the year. 
E)  none of the above. 
A)  the status of Americans working overseas. 
B)  the taxability of dismissal payments. 
C)  the determination of an employer's experience rating. 
D)  the transfer of an employee from one state to another during the year. 
E)  none of the above.

Question 11

If a business has ceased operations during the year, as long as the payments of the FUTA taxes have been made, a Form 940 does not need to be completed for that year.

Accepted Answer

A) True 
 B)False

Question 12

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 . Ted Carman worked for Rivertide Country Club and earned $28,500 during the year. He also worked part time for Harrison Furniture Company and earned $12,400 during the year. The SUTA tax rate for Rivertide Country Club is 4.2% on the first $8,000, and the rate for Harrison Furniture Company is 5.1% on the first $8,000. Calculate the FUTA and SUTA taxes paid by the employers on Carman's earnings.

Accepted Answer

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

Question 13

A bonus paid as remuneration for services is not considered taxable wages for unemployment tax purposes even if the employee has not exceeded the taxable wage base.

Accepted Answer

A) True 
 B)False

Question 14

If a company is liable for a credit reduction (due to Title XII advance), this extra tax must be paid along with each of the required deposits made during the year.

Accepted Answer

A) True 
 B)False

Question 15

For FUTA purposes, the cash value of remuneration paid in any medium other than cash is not considered taxable wages.

Accepted Answer

A) True 
 B)False

Question 16

Partnerships do not have to pay unemployment taxes on the wages of their employees.

Accepted Answer

A) True 
 B)False

Question 17

Jason Jeffries earned $10,200 while working for Brown Company. The company's SUTA tax rate is 2.9% of the first $7,000 of each employee's earnings. Compute the total unemployment taxes (SUTA and FUTA) that Brown Company should pay on Jeffries' earnings.

Accepted Answer

The answer of Jason Jeffries earned $10,200 while working for...

Question 18

In certain circumstances, a FUTA tax payment can be remitted with Form 940.

Accepted Answer

A) True 
 B)False

Question 19

Directors of corporations who only attend and participate in board of directors' meetings are not covered as employees under FUTA.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following payments are taxable payments for federal unemployment tax?

Accepted Answer

A)  Christmas gifts, excluding noncash gifts of nominal value 
B)  Caddy fees 
C)  Courtesy discounts to employees and their families 
D)  Workers' compensation payments 
E)  Value of meals and lodging furnished employees for the convenience of the employer 
A)  Christmas gifts, excluding noncash gifts of nominal value 
B)  Caddy fees 
C)  Courtesy discounts to employees and their families 
D)  Workers' compensation payments 
E)  Value of meals and lodging furnished employees for the convenience of the employer

For the purpose of the FUTA tax, members of partnerships are considered employees.

Retirement pay is taxable wages for FUTA purposes.

If all wages were excluded from SUTA taxes, but were subjected to FUTA, the FUTA tax rate would be 6.0%.

The location of the employee's residence is the primary factor to be considered in determining coverage of an employee who works in more than one state.

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

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

If an employer's FUTA tax liability for the 1st quarter is $935, no payment is required for the 1st quarter.

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

Voluntary contributions to a state's unemployment department are:

An aspect of the interstate reciprocal arrangement concerns:

If a business has ceased operations during the year, as long as the payments of the FUTA taxes have been made, a Form 940 does not need to be completed for that year.

A bonus paid as remuneration for services is not considered taxable wages for unemployment tax purposes even if the employee has not exceeded the taxable wage base.

If a company is liable for a credit reduction (due to Title XII advance), this extra tax must be paid along with each of the required deposits made during the year.

For FUTA purposes, the cash value of remuneration paid in any medium other than cash is not considered taxable wages.

Partnerships do not have to pay unemployment taxes on the wages of their employees.

Jason Jeffries earned $10,200 while working for Brown Company. The company's SUTA tax rate is 2.9% of the first $7,000 of each employee's earnings. Compute the total unemployment taxes (SUTA and FUTA) that Brown Company should pay on Jeffries' earnings.

In certain circumstances, a FUTA tax payment can be remitted with Form 940.

Directors of corporations who only attend and participate in board of directors' meetings are not covered as employees under FUTA.

Which of the following payments are taxable payments for federal unemployment tax?

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

For the purpose of the FUTA tax, members of partnerships are considered employees.

Retirement pay is taxable wages for FUTA purposes.

If all wages were excluded from SUTA taxes, but were subjected to FUTA, the FUTA tax rate would be 6.0%.

The location of the employee's residence is the primary factor to be considered in determining coverage of an employee who works in more than one state.

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

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

If an employer's FUTA tax liability for the 1st quarter is $935, no payment is required for the 1st quarter.

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

Voluntary contributions to a state's unemployment department are:

An aspect of the interstate reciprocal arrangement concerns:

If a business has ceased operations during the year, as long as the payments of the FUTA taxes have been made, a Form 940 does not need to be completed for that year.

A bonus paid as remuneration for services is not considered taxable wages for unemployment tax purposes even if the employee has not exceeded the taxable wage base.

If a company is liable for a credit reduction (due to Title XII advance), this extra tax must be paid along with each of the required deposits made during the year.

For FUTA purposes, the cash value of remuneration paid in any medium other than cash is not considered taxable wages.

Partnerships do not have to pay unemployment taxes on the wages of their employees.

Jason Jeffries earned $10,200 while working for Brown Company. The company's SUTA tax rate is 2.9% of the first $7,000 of each employee's earnings. Compute the total unemployment taxes (SUTA and FUTA) that Brown Company should pay on Jeffries' earnings.

In certain circumstances, a FUTA tax payment can be remitted with Form 940.

Directors of corporations who only attend and participate in board of directors' meetings are not covered as employees under FUTA.

Which of the following payments are taxable payments for federal unemployment tax?

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Analyzing and Journalizing Payroll

Filters