Question 1

Safe harbor is a term used to describe a provision in the Internal Revenue Code that protects taxpayers from penalty under certain situations.

Accepted Answer

A) True 
 B)False

Question 2

Generally,an employer must withhold 28% of certain taxable payments if the payee fails to furnish the employer with a correct taxpayer identification number.

Accepted Answer

A) True 
 B)False

Question 3

Employees claim withholding allowances on Form W-4.For each withholding allowance claimed,their withholding base is reduced by what amount for calendar year 2017?

Accepted Answer

A) $3,900. 
B) $3,950. 
C) $4,000. 
D) $4,050. 
A) $3,900. 
B) $3,950. 
C) $4,000. 
D) $4,050.

Question 4

Employers are required to deposit FUTA taxes when their liability for a quarter exceeds:

Accepted Answer

A) $500. 
B) $1,000. 
C) $1,500. 
D) $2,500. 
A) $500. 
B) $1,000. 
C) $1,500. 
D) $2,500.

Question 5

Employees typically receive a paycheck on a weekly,biweekly,semimonthly or monthly basis.

Accepted Answer

A) True 
 B)False

Question 6

Loretta has two jobs.She earned $130,000 from her first job and $20,000 from her second job.How much total FICA taxes will Loretta have withheld from her wages from working two jobs?

Accepted Answer

A) $10,617.00 
B) $11,301.40. 
C) $11,434.40. 
D) $11,475.00. 
A) $10,617.00 
B) $11,301.40. 
C) $11,434.40. 
D) $11,475.00.

Question 7

An employer who is a monthly schedule depositor and accumulates a $100,000 tax liability on any day must pay the tax on the next business day and is allowed by law to remain a monthly schedule depositor until the next year when the employer will become a semiweekly schedule depositor.

Accepted Answer

A) True 
 B)False

Question 8

Jack is married,is paid $6,852 biweekly,and claims three allowances.What amount of federal income tax is withheld from his gross wages each pay period?

Accepted Answer

A) $1,179.14. 
B) $1,198.24. 
C) $1,188.91. 
D) $1,190.06. 
A) $1,179.14. 
B) $1,198.24. 
C) $1,188.91. 
D) $1,190.06.

Question 9

A taxpayer with an AGI of $300,000 for 2017 pays estimated taxes.The taxpayer can avoid an underpayment penalty by paying:

Accepted Answer

A) At least 90% of his/her 2015-2017 tax liability if his/her 2016 adjusted gross income was less than $200,000 regardless of filing status. 
B) At least 90% of his/her 2017 tax liability ratably over four quarterly payments. 
C) At least 100% of his/her 2017 tax liability ratably over four quarterly payments. 
D) At least 110% of his/her 2017 tax liability ratably over four quarterly payments. 
A) At least 90% of his/her 2015-2017 tax liability if his/her 2016 adjusted gross income was less than $200,000 regardless of filing status. 
B) At least 90% of his/her 2017 tax liability ratably over four quarterly payments. 
C) At least 100% of his/her 2017 tax liability ratably over four quarterly payments. 
D) At least 110% of his/her 2017 tax liability ratably over four quarterly payments.

Question 10

Irene earned wages of $130,500 during 2017.What share of FICA tax is Irene's employer responsible for in 2017?

Accepted Answer

A) $9,044.40. 
B) $9,075.40. 
C) $9,778.65. 
D) $9,983.25. 
A) $9,044.40. 
B) $9,075.40. 
C) $9,778.65. 
D) $9,983.25.

Question 11

On January 3,2017,Terrence employed a part-time household worker in his home.He paid the household worker $720 per month for 2017.What amount of FICA taxes is Terrence required to record on Schedule H?

Accepted Answer

A) $1,220.79. 
B) $1,296.00. 
C) $1,321.92. 
D) $1,363.92. 
A) $1,220.79. 
B) $1,296.00. 
C) $1,321.92. 
D) $1,363.92.

Question 12

Unemployment tax payments are made by federal and state governmental agencies directly to the taxpayer who is unemployed.

Accepted Answer

A) True 
 B)False

Question 13

Jean received a commission of $7,000 from her employer.How is the federal withholding tax on this payment calculated if she also earns semimonthly wages of $3,500?

Accepted Answer

A) If taxes have already been withheld from Jean's wages separately,the commission is added to the wages and federal taxes are withheld on this combined amount.Any excess taxes withheld this pay period will be refunded to Jean on her next paycheck. 
B) If taxes have already been withheld from Jean's wages,the commission is taxed at a flat rate of 25%. 
C) If taxes have already been withheld from Jean's regular wages,the commission is added to the wages and the entire amount is subject to withholding at a rate of 25%. 
D) If taxes have already been withheld from Jean's wages separately,the commission is subject to backup withholding of 28%. 
A) If taxes have already been withheld from Jean's wages separately,the commission is added to the wages and federal taxes are withheld on this combined amount.Any excess taxes withheld this pay period will be refunded to Jean on her next paycheck. 
B) If taxes have already been withheld from Jean's wages,the commission is taxed at a flat rate of 25%. 
C) If taxes have already been withheld from Jean's regular wages,the commission is added to the wages and the entire amount is subject to withholding at a rate of 25%. 
D) If taxes have already been withheld from Jean's wages separately,the commission is subject to backup withholding of 28%.

Question 14

Employers are required to deposit FUTA taxes when their liability exceeds:

Accepted Answer

A) $100. 
B) $500. 
C) $1,000. 
D) $2,500. 
A) $100. 
B) $500. 
C) $1,000. 
D) $2,500.

Question 15

Employers are not required to withhold any federal taxes on allocated tips.

Accepted Answer

A) True 
 B)False

Question 16

Payroll tax deposits are made to any authorized financial depository or through an electronic funds transfer payment system.

Accepted Answer

A) True 
 B)False

Question 17

The federal income and social security taxes reported on a W-2 form are the amounts used to determine if a taxpayer will receive a refund on a Form 1040.

Accepted Answer

A) True 
 B)False

Question 18

Juan is married,is paid 2,200 per week,and claims three withholding allowances.What is the amount of federal income tax withheld from Juan's gross wages for the week using the percentage method? (Round your answer to 2 decimal places. )

Accepted Answer

A) $286.13. 
B) $344.55. 
C) $403.20. 
D) $404.58. 
A) $286.13. 
B) $344.55. 
C) $403.20. 
D) $404.58.

Question 19

Joe is paid $1,136 per week.Using the percentage method,what is the amount of federal income tax withheld from Joe's paycheck under the following situations? (Round your answer to 2 decimal places. )
a.Joe is single and claims zero (0)withholding allowances.
b.Joe is married and claims two withholding allowances.
c.Joe is single and claims two withholding allowances.

Accepted Answer

a.$482.64

Question 20

The amount withheld from supplemental payments depends on whether the employer accounts for the payment separate from regular wages.

Accepted Answer

A) True 
 B)False

Safe harbor is a term used to describe a provision in the Internal Revenue Code that protects taxpayers from penalty under certain situations.

Generally,an employer must withhold 28% of certain taxable payments if the payee fails to furnish the employer with a correct taxpayer identification number.

Employees claim withholding allowances on Form W-4.For each withholding allowance claimed,their withholding base is reduced by what amount for calendar year 2017?

Employers are required to deposit FUTA taxes when their liability for a quarter exceeds:

Employees typically receive a paycheck on a weekly,biweekly,semimonthly or monthly basis.

Loretta has two jobs.She earned $130,000 from her first job and $20,000 from her second job.How much total FICA taxes will Loretta have withheld from her wages from working two jobs?

An employer who is a monthly schedule depositor and accumulates a $100,000 tax liability on any day must pay the tax on the next business day and is allowed by law to remain a monthly schedule depositor until the next year when the employer will become a semiweekly schedule depositor.

Jack is married,is paid $6,852 biweekly,and claims three allowances.What amount of federal income tax is withheld from his gross wages each pay period?

A taxpayer with an AGI of $300,000 for 2017 pays estimated taxes.The taxpayer can avoid an underpayment penalty by paying:

Irene earned wages of $130,500 during 2017.What share of FICA tax is Irene's employer responsible for in 2017?

On January 3,2017,Terrence employed a part-time household worker in his home.He paid the household worker $720 per month for 2017.What amount of FICA taxes is Terrence required to record on Schedule H?

Unemployment tax payments are made by federal and state governmental agencies directly to the taxpayer who is unemployed.

Jean received a commission of $7,000 from her employer.How is the federal withholding tax on this payment calculated if she also earns semimonthly wages of $3,500?

Employers are required to deposit FUTA taxes when their liability exceeds:

Employers are not required to withhold any federal taxes on allocated tips.

Payroll tax deposits are made to any authorized financial depository or through an electronic funds transfer payment system.

The federal income and social security taxes reported on a W-2 form are the amounts used to determine if a taxpayer will receive a refund on a Form 1040.

Juan is married,is paid 2,200 per week,and claims three withholding allowances.What is the amount of federal income tax withheld from Juan's gross wages for the week using the percentage method? (Round your answer to 2 decimal places. )

The amount withheld from supplemental payments depends on whether the employer accounts for the payment separate from regular wages.

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

Safe harbor is a term used to describe a provision in the Internal Revenue Code that protects taxpayers from penalty under certain situations.

Generally,an employer must withhold 28% of certain taxable payments if the payee fails to furnish the employer with a correct taxpayer identification number.

Employees claim withholding allowances on Form W-4.For each withholding allowance claimed,their withholding base is reduced by what amount for calendar year 2017?

Employers are required to deposit FUTA taxes when their liability for a quarter exceeds:

Employees typically receive a paycheck on a weekly,biweekly,semimonthly or monthly basis.

Loretta has two jobs.She earned $130,000 from her first job and $20,000 from her second job.How much total FICA taxes will Loretta have withheld from her wages from working two jobs?

An employer who is a monthly schedule depositor and accumulates a $100,000 tax liability on any day must pay the tax on the next business day and is allowed by law to remain a monthly schedule depositor until the next year when the employer will become a semiweekly schedule depositor.

Jack is married,is paid $6,852 biweekly,and claims three allowances.What amount of federal income tax is withheld from his gross wages each pay period?

A taxpayer with an AGI of $300,000 for 2017 pays estimated taxes.The taxpayer can avoid an underpayment penalty by paying:

Irene earned wages of $130,500 during 2017.What share of FICA tax is Irene's employer responsible for in 2017?

On January 3,2017,Terrence employed a part-time household worker in his home.He paid the household worker $720 per month for 2017.What amount of FICA taxes is Terrence required to record on Schedule H?

Unemployment tax payments are made by federal and state governmental agencies directly to the taxpayer who is unemployed.

Jean received a commission of $7,000 from her employer.How is the federal withholding tax on this payment calculated if she also earns semimonthly wages of $3,500?

Employers are required to deposit FUTA taxes when their liability exceeds:

Employers are not required to withhold any federal taxes on allocated tips.

Payroll tax deposits are made to any authorized financial depository or through an electronic funds transfer payment system.

The federal income and social security taxes reported on a W-2 form are the amounts used to determine if a taxpayer will receive a refund on a Form 1040.

Juan is married,is paid 2,200 per week,and claims three withholding allowances.What is the amount of federal income tax withheld from Juan's gross wages for the week using the percentage method? (Round your answer to 2 decimal places. )

The amount withheld from supplemental payments depends on whether the employer accounts for the payment separate from regular wages.

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