Question 1

Form 941 is a quarterly reconciliation report an employer sends to the IRS showing all federal payroll tax liability and payments for the period.

Accepted Answer

A) True 
 B)False

Question 2

Copy A of the Form W-2 is a red scannable form that is sent directly to the Internal Revenue Service to track all wages for federal income tax and social security purposes.

Accepted Answer

A) True 
 B)False

Question 3

A taxpayer had AGI of $300,000 in 2017 and AGI of $250,000 in 2016.When filing her 2017 return,she expects her unpaid tax liability to be at least $1,000.She must make estimated payments equal to the smaller of 90% of the tax shown on her 2017 return or

Accepted Answer

A) 110% of the tax on her 2016 return because 2016 AGI was more than $150,000. 
B) 100% of the tax on her 2016 return regardless of 2017 AGI. 
C) 100% of the tax on the 2016 return because 2017 AGI was more than $100,000. 
D) 110% of the tax on the 2016 return because 2016 AGI was greater than 2017 AGI. 
A) 110% of the tax on her 2016 return because 2016 AGI was more than $150,000. 
B) 100% of the tax on her 2016 return regardless of 2017 AGI. 
C) 100% of the tax on the 2016 return because 2017 AGI was more than $100,000. 
D) 110% of the tax on the 2016 return because 2016 AGI was greater than 2017 AGI.

Question 4

Angie earned $129,200 during 2017.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in social security taxes for 2017?

Accepted Answer

A) $8,010.40. 
B) $7,347.00. 
C) $7,886.40. 
D) $7,874.00. 
A) $8,010.40. 
B) $7,347.00. 
C) $7,886.40. 
D) $7,874.00.

Question 5

Angie earned $129,200 during 2017.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in Medicare taxes for 2017?

Accepted Answer

A) $1,873.40. 
B) $1,844.40. 
C) $1,841.50. 
D) $1,718.25. 
A) $1,873.40. 
B) $1,844.40. 
C) $1,841.50. 
D) $1,718.25.

Question 6

The Anderson Company started its business on August 3rd.On August 14th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 28,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?

Accepted Answer

A) Monthly because its accumulated tax liability is not more than $100,000 on any one day. 
B) Monthly because new companies do not have a look back period. 
C) Semiweekly because its accumulated tax liability is $100,000 for the month. 
D) Semiweekly for this pay period only and then monthly for the remainder of the year. 
A) Monthly because its accumulated tax liability is not more than $100,000 on any one day. 
B) Monthly because new companies do not have a look back period. 
C) Semiweekly because its accumulated tax liability is $100,000 for the month. 
D) Semiweekly for this pay period only and then monthly for the remainder of the year.

Question 7

Sandy is a self-employed health information coder.She has net earnings (profit)from her business of $71,200.Her self-employment taxes for the year are: (Round your answer to 2 decimal places. )

Accepted Answer

A) $10,060.24. 
B) $10,066.24. 
C) $10,680.00. 
D) $10,893.60. 
A) $10,060.24. 
B) $10,066.24. 
C) $10,680.00. 
D) $10,893.60.

Question 8

Form 941 is prepared by the employer on a quarterly basis to record all of the following payroll taxes except:

Accepted Answer

A) FUTA. 
B) Social security tax. 
C) Medicare tax. 
D) Federal withholding tax. 
A) FUTA. 
B) Social security tax. 
C) Medicare tax. 
D) Federal withholding tax.

Question 9

An employer must send Copy A of Form W-2 with the W-3 transmittal form for each employee paid in 2017 to the Social Security Administration no later than:

Accepted Answer

A) January 31,2018. 
B) February 1,2018. 
C) February 28,2018. 
D) March 1,2018. 
A) January 31,2018. 
B) February 1,2018. 
C) February 28,2018. 
D) March 1,2018.

Question 10

Arlene is a college professor earning $99,200 and also has a sole proprietor consulting practice where she earned $28,000 for 2017.How much of her total earnings are subject to self-employment tax for 2017?

Accepted Answer

A) $25,588. 
B) $25,858. 
C) $27,000. 
D) $28,000. 
A) $25,588. 
B) $25,858. 
C) $27,000. 
D) $28,000.

Question 11

New employers are always considered to be monthly schedule depositors regardless of the amount of their federal tax liability during their first year.

Accepted Answer

A) True 
 B)False

Question 12

Self-employed taxpayers who also receive wages from an employer are not subject to FICA or federal withholding taxes.

Accepted Answer

A) True 
 B)False

Question 13

Carolyne is married,is paid $1,390 per week,and claims two withholding allowances.What amount of federal income tax is withheld from her gross wages each week using the wage bracket table in Appendix A at the end of the chapter.

Accepted Answer

A) $142.00. 
B) $143.00. 
C) $154.00. 
D) $155.00. 
A) $142.00. 
B) $143.00. 
C) $154.00. 
D) $155.00.

Question 14

Taxpayers who employ household workers must file a quarterly 941 return and an annual 940 return.

Accepted Answer

A) True 
 B)False

Question 15

Household employees are subject to FICA withholding if they are paid at least what amount during 2017?

Accepted Answer

A) $1,700. 
B) $1,800. 
C) $1,900. 
D) $2,000. 
A) $1,700. 
B) $1,800. 
C) $1,900. 
D) $2,000.

Question 16

If,on any day during the month,an employer who is a monthly schedule depositor accumulates a $100,000 tax liability,which of the following statements is true:

Accepted Answer

A) The employer remits the tax by the next banking day and becomes a semiweekly depositor for the remainder of the calendar year,then goes back to being a monthly scheduled depositor in the following year. 
B) The deposit must be made by the last day of the month if the employer is a monthly schedule depositor. 
C) The deposit is made either the following Wednesday or Friday regardless if the employer is a semiweekly schedule depositor. 
D) The employer remits the tax by the next banking day and is now considered a semiweekly depositor for the remainder of the current year and for the entire following year. 
A) The employer remits the tax by the next banking day and becomes a semiweekly depositor for the remainder of the calendar year,then goes back to being a monthly scheduled depositor in the following year. 
B) The deposit must be made by the last day of the month if the employer is a monthly schedule depositor. 
C) The deposit is made either the following Wednesday or Friday regardless if the employer is a semiweekly schedule depositor. 
D) The employer remits the tax by the next banking day and is now considered a semiweekly depositor for the remainder of the current year and for the entire following year.

Question 17

The withholding tables are structured so that employers withhold approximately the same amount for a given annual income regardless of how often the employee is paid.

Accepted Answer

A) True 
 B)False

Question 18

What form is given to an employee to correct incorrect payroll information?

Accepted Answer

A) W-2C. 
B) W-4. 
C) W-9. 
D) None.The employee notifies the IRS directly when he or she files a Form 1040. 
A) W-2C. 
B) W-4. 
C) W-9. 
D) None.The employee notifies the IRS directly when he or she files a Form 1040.

Question 19

Alexandra earned $200 in tips in June.When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

Accepted Answer

A) June 30. 
B) July 10. 
C) July 31. 
D) Alexandra is not under any obligation to inform her employer of her tips earned in any one month. 
A) June 30. 
B) July 10. 
C) July 31. 
D) Alexandra is not under any obligation to inform her employer of her tips earned in any one month.

Question 20

Failure to furnish a correct TIN to a requester (payer)can result in a penalty for the payee of:

Accepted Answer

A) $0,it is the responsibility of the payer (requester)to have the correct information. 
B) $25 for each failure to complete a W-9. 
C) $50 for each failure to complete a W-9. 
D) $500 maximum for failure to complete any W-9 forms as required. 
A) $0,it is the responsibility of the payer (requester)to have the correct information. 
B) $25 for each failure to complete a W-9. 
C) $50 for each failure to complete a W-9. 
D) $500 maximum for failure to complete any W-9 forms as required.

Form 941 is a quarterly reconciliation report an employer sends to the IRS showing all federal payroll tax liability and payments for the period.

Copy A of the Form W-2 is a red scannable form that is sent directly to the Internal Revenue Service to track all wages for federal income tax and social security purposes.

A taxpayer had AGI of $300,000 in 2017 and AGI of $250,000 in 2016.When filing her 2017 return,she expects her unpaid tax liability to be at least $1,000.She must make estimated payments equal to the smaller of 90% of the tax shown on her 2017 return or

Angie earned $129,200 during 2017.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in social security taxes for 2017?

Angie earned $129,200 during 2017.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in Medicare taxes for 2017?

The Anderson Company started its business on August 3^rd.On August 14^th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 28,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?

Sandy is a self-employed health information coder.She has net earnings (profit)from her business of $71,200.Her self-employment taxes for the year are: (Round your answer to 2 decimal places. )

Form 941 is prepared by the employer on a quarterly basis to record all of the following payroll taxes except:

An employer must send Copy A of Form W-2 with the W-3 transmittal form for each employee paid in 2017 to the Social Security Administration no later than:

Arlene is a college professor earning $99,200 and also has a sole proprietor consulting practice where she earned $28,000 for 2017.How much of her total earnings are subject to self-employment tax for 2017?

New employers are always considered to be monthly schedule depositors regardless of the amount of their federal tax liability during their first year.

Self-employed taxpayers who also receive wages from an employer are not subject to FICA or federal withholding taxes.

Carolyne is married,is paid $1,390 per week,and claims two withholding allowances.What amount of federal income tax is withheld from her gross wages each week using the wage bracket table in Appendix A at the end of the chapter.

Taxpayers who employ household workers must file a quarterly 941 return and an annual 940 return.

Household employees are subject to FICA withholding if they are paid at least what amount during 2017?

If,on any day during the month,an employer who is a monthly schedule depositor accumulates a $100,000 tax liability,which of the following statements is true:

The withholding tables are structured so that employers withhold approximately the same amount for a given annual income regardless of how often the employee is paid.

What form is given to an employee to correct incorrect payroll information?

Alexandra earned $200 in tips in June.When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

Failure to furnish a correct TIN to a requester (payer)can result in a penalty for the payee of:

Introduction to Taxation, the Income Tax Formula, and Form 1040EZ

Expanded Tax Formula, forms 1040A and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, Royalties, and Income From Flow- Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040,lines 48 Through 54 and Lines 66A Through 73

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters

Exam 10: Payroll Taxes

Form 941 is a quarterly reconciliation report an employer sends to the IRS showing all federal payroll tax liability and payments for the period.

Copy A of the Form W-2 is a red scannable form that is sent directly to the Internal Revenue Service to track all wages for federal income tax and social security purposes.

A taxpayer had AGI of $300,000 in 2017 and AGI of $250,000 in 2016.When filing her 2017 return,she expects her unpaid tax liability to be at least $1,000.She must make estimated payments equal to the smaller of 90% of the tax shown on her 2017 return or

Angie earned $129,200 during 2017.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in social security taxes for 2017?

Angie earned $129,200 during 2017.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in Medicare taxes for 2017?

The Anderson Company started its business on August 3rd.On August 14th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 28,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?

Sandy is a self-employed health information coder.She has net earnings (profit)from her business of $71,200.Her self-employment taxes for the year are: (Round your answer to 2 decimal places. )

Form 941 is prepared by the employer on a quarterly basis to record all of the following payroll taxes except:

An employer must send Copy A of Form W-2 with the W-3 transmittal form for each employee paid in 2017 to the Social Security Administration no later than:

Arlene is a college professor earning $99,200 and also has a sole proprietor consulting practice where she earned $28,000 for 2017.How much of her total earnings are subject to self-employment tax for 2017?

New employers are always considered to be monthly schedule depositors regardless of the amount of their federal tax liability during their first year.

Self-employed taxpayers who also receive wages from an employer are not subject to FICA or federal withholding taxes.

Carolyne is married,is paid $1,390 per week,and claims two withholding allowances.What amount of federal income tax is withheld from her gross wages each week using the wage bracket table in Appendix A at the end of the chapter.

Taxpayers who employ household workers must file a quarterly 941 return and an annual 940 return.

Household employees are subject to FICA withholding if they are paid at least what amount during 2017?

If,on any day during the month,an employer who is a monthly schedule depositor accumulates a $100,000 tax liability,which of the following statements is true:

The withholding tables are structured so that employers withhold approximately the same amount for a given annual income regardless of how often the employee is paid.

What form is given to an employee to correct incorrect payroll information?

Alexandra earned $200 in tips in June.When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

Failure to furnish a correct TIN to a requester (payer)can result in a penalty for the payee of:

Introduction to Taxation, the Income Tax Formula, and Form 1040EZ

Expanded Tax Formula, forms 1040A and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, Royalties, and Income From Flow- Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040,lines 48 Through 54 and Lines 66A Through 73

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters

The Anderson Company started its business on August 3^rd.On August 14^th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 28,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?