Question 1

Hank received a bonus of $5,000 from his employer.How is the federal withholding tax on this payment calculated if he also earns biweekly wages of $2,000?

Accepted Answer

A) If taxes have already been withheld from his wages separately,the bonus is taxed at a flat rate of 25%. 
B) If taxes have already been withheld from Hank's wages separately,the bonus is subject to a backup withholding rate of 28%. 
C) If taxes have not been already withheld from Hank's regular wage,the bonus is added to the wages and withheld at the rate of 25%. 
D) If taxes have already been withheld from Hank's wages separately,the bonus is added to the wages and federal taxes are withheld at this combined amount.Any excess taxes withheld this period will be refunded to Hank on his next paycheck. 
A) If taxes have already been withheld from his wages separately,the bonus is taxed at a flat rate of 25%. 
B) If taxes have already been withheld from Hank's wages separately,the bonus is subject to a backup withholding rate of 28%. 
C) If taxes have not been already withheld from Hank's regular wage,the bonus is added to the wages and withheld at the rate of 25%. 
D) If taxes have already been withheld from Hank's wages separately,the bonus is added to the wages and federal taxes are withheld at this combined amount.Any excess taxes withheld this period will be refunded to Hank on his next paycheck.

Question 2

If a taxpayer works for two separate employers,how much in FUTA taxes is each employer responsible to remit in the name of the taxpayer?

Accepted Answer

A) Only the first employer is required to remit FUTA taxes on the wages earned from the first job. 
B) Both employers must remit FUTA taxes on the first $7,000 in wages they pay to the taxpayer. 
C) The first employer remits 5.4% on the first $7,000 in wages while the second employer remits only .6% on the first $7,000 in wages to equal the 6.0% rate. 
D) The first employer remits FUTA tax on the first $7,000 in wages and the second employer remits FUTA tax on the next $7,000 in wages. 
A) Only the first employer is required to remit FUTA taxes on the wages earned from the first job. 
B) Both employers must remit FUTA taxes on the first $7,000 in wages they pay to the taxpayer. 
C) The first employer remits 5.4% on the first $7,000 in wages while the second employer remits only .6% on the first $7,000 in wages to equal the 6.0% rate. 
D) The first employer remits FUTA tax on the first $7,000 in wages and the second employer remits FUTA tax on the next $7,000 in wages.

Question 3

Rahni has two jobs and both employers withheld FICA tax.From her first job,she earned $104,750 and from her second job she earned $24,150.How much can Rahni claim on her Form 1040 as excess social security tax paid in 2017?

Accepted Answer

A) $105.40. 
B) $117.80. 
C) $161.20. 
D) $0. 
A) $105.40. 
B) $117.80. 
C) $161.20. 
D) $0.

Question 4

The payroll period for a semiweekly schedule depositor ends on and is paid on Friday,July 10th.The employer must deposit the federal taxes withheld for this pay period on or before:

Accepted Answer

A) The following Monday. 
B) The following Wednesday. 
C) The following Friday. 
D) The last day of the month. 
A) The following Monday. 
B) The following Wednesday. 
C) The following Friday. 
D) The last day of the month.

Question 5

An employee who works for multiple employers will likely be under-withheld for federal income tax purposes and can owe additional taxes when filing his/her return.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements regarding the lookback period for 2017 is correct?

Accepted Answer

A) The lookback period consists of the four quarters starting January 1,2016 through December 31,2016. 
B) The lookback period consists of the four quarters starting April 1,2015 through March 31,2016. 
C) The lookback period consists of the four quarters starting July 1,2015 through June 30,2016. 
D) The lookback period consists of the four quarters starting October 1,2015 through September 30,2016. 
A) The lookback period consists of the four quarters starting January 1,2016 through December 31,2016. 
B) The lookback period consists of the four quarters starting April 1,2015 through March 31,2016. 
C) The lookback period consists of the four quarters starting July 1,2015 through June 30,2016. 
D) The lookback period consists of the four quarters starting October 1,2015 through September 30,2016.

Question 7

Employers with a payroll tax liability of less than $2,500 at the end of any quarter pay their tax liability:

Accepted Answer

A) Directly to the authorized depository after the end of the quarter when Form 941 is filed. 
B) Directly to the authorized depository on the same day the Form 941 is mailed. 
C) Directly only if they use the EFTPS form of payment before Form 941 is filed. 
D) Directly to the Internal Revenue Service when they file Form 941. 
A) Directly to the authorized depository after the end of the quarter when Form 941 is filed. 
B) Directly to the authorized depository on the same day the Form 941 is mailed. 
C) Directly only if they use the EFTPS form of payment before Form 941 is filed. 
D) Directly to the Internal Revenue Service when they file Form 941.

Question 8

Danita is married and is paid $5,325 semimonthly.She claims four withholding allowances.What amount of federal income tax will be withheld from Danita's gross wages for each payroll period? (Round your answer to 2 decimal places. )

Accepted Answer

A) $886.05. 
B) $621.50. 
C) $608.50. 
D) $717.25. 
A) $886.05. 
B) $621.50. 
C) $608.50. 
D) $717.25.

Question 9

Schedule H is completed by the household worker and remitted with his/her Form 1040.

Accepted Answer

A) True 
 B)False

Question 10

When using the wage bracket method,withholding allowances are deducted before figuring the federal withholding amount.

Accepted Answer

A) True 
 B)False

Question 11

When calculating the FUTA tax due,an employer can qualify for a 5.4% maximum credit for state unemployment taxes paid.

Accepted Answer

A) True 
 B)False

Question 12

GTW Inc. ,did not make timely deposits for SUTA purposes and its state wages subject to SUTA and FUTA were $289,000.Assume the wage limit was reached prior to July 1,2017.
a.Calculate the amount of tax due on the 940.
b.How much would the FUTA tax have been if GTW made timely deposits to its state fund?

Accepted Answer

a.$3,294.6

Question 13

Mahmet earned wages of $128,700 during 2017.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in social security taxes for the year? (Round your answer to 2 decimal places. )

Accepted Answer

A) $7,886.40. 
B) $7,347.00. 
C) $7,874.00. 
D) $7,868.40. 
A) $7,886.40. 
B) $7,347.00. 
C) $7,874.00. 
D) $7,868.40.

Question 14

The amount of federal income taxes withheld should approximate the tax liability the employee will owe to the federal government.

Accepted Answer

A) True 
 B)False

Question 15

Esmeralda is single and is paid $759 per week claiming two allowances.What is the amount of federal income tax withheld on Esmeralda's gross wages for the week? Use the wage bracket table in Appendix A at the end of the chapter.

Accepted Answer

A) $86. 
B) $75. 
C) $74. 
D) $88. 
A) $86. 
B) $75. 
C) $74. 
D) $88.

Question 16

The maximum penalty imposed on employers for incorrect or late filing of W-2's (subject to maximum penalties)is:

Accepted Answer

A) $50 per form. 
B) $100 per form. 
C) $260 per form. 
D) $530 per form. 
A) $50 per form. 
B) $100 per form. 
C) $260 per form. 
D) $530 per form.

Question 17

Form W-4 is used by employees to indicate the filing status and number of withholding allowances claimed on Form 1040.

Accepted Answer

A) True 
 B)False

Question 18

Supplemental wages are only subject to FICA taxes and federal withholding taxes and are not subject to SUTA or FUTA taxes.

Accepted Answer

A) True 
 B)False

Question 19

Although the federal unemployment tax is 6.0% of covered wages,employers receive a 5.4% federal credit if they make accurate and timely state unemployment tax deposits.

Accepted Answer

A) True 
 B)False

Question 20

Brenda is a self-employed accountant.She has net earnings (profit)from her practice of $74,000.Her self-employment taxes for the year are: (Round your answer to 2 decimal places. )

Accepted Answer

A) $10,250.85. 
B) $10,450.21. 
C) $10,455.87. 
D) $11,322.00. 
A) $10,250.85. 
B) $10,450.21. 
C) $10,455.87. 
D) $11,322.00.

Hank received a bonus of $5,000 from his employer.How is the federal withholding tax on this payment calculated if he also earns biweekly wages of $2,000?

If a taxpayer works for two separate employers,how much in FUTA taxes is each employer responsible to remit in the name of the taxpayer?

Rahni has two jobs and both employers withheld FICA tax.From her first job,she earned $104,750 and from her second job she earned $24,150.How much can Rahni claim on her Form 1040 as excess social security tax paid in 2017?

The payroll period for a semiweekly schedule depositor ends on and is paid on Friday,July 10^th.The employer must deposit the federal taxes withheld for this pay period on or before:

An employee who works for multiple employers will likely be under-withheld for federal income tax purposes and can owe additional taxes when filing his/her return.

Which of the following statements regarding the lookback period for 2017 is correct?

Employers with a payroll tax liability of less than $2,500 at the end of any quarter pay their tax liability:

Danita is married and is paid $5,325 semimonthly.She claims four withholding allowances.What amount of federal income tax will be withheld from Danita's gross wages for each payroll period? (Round your answer to 2 decimal places. )

Schedule H is completed by the household worker and remitted with his/her Form 1040.

When using the wage bracket method,withholding allowances are deducted before figuring the federal withholding amount.

When calculating the FUTA tax due,an employer can qualify for a 5.4% maximum credit for state unemployment taxes paid.

Mahmet earned wages of $128,700 during 2017.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in social security taxes for the year? (Round your answer to 2 decimal places. )

The amount of federal income taxes withheld should approximate the tax liability the employee will owe to the federal government.

Esmeralda is single and is paid $759 per week claiming two allowances.What is the amount of federal income tax withheld on Esmeralda's gross wages for the week? Use the wage bracket table in Appendix A at the end of the chapter.

The maximum penalty imposed on employers for incorrect or late filing of W-2's (subject to maximum penalties)is:

Form W-4 is used by employees to indicate the filing status and number of withholding allowances claimed on Form 1040.

Supplemental wages are only subject to FICA taxes and federal withholding taxes and are not subject to SUTA or FUTA taxes.

Although the federal unemployment tax is 6.0% of covered wages,employers receive a 5.4% federal credit if they make accurate and timely state unemployment tax deposits.

Brenda is a self-employed accountant.She has net earnings (profit)from her practice of $74,000.Her self-employment taxes for the year are: (Round your answer to 2 decimal places. )

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

Hank received a bonus of $5,000 from his employer.How is the federal withholding tax on this payment calculated if he also earns biweekly wages of $2,000?

If a taxpayer works for two separate employers,how much in FUTA taxes is each employer responsible to remit in the name of the taxpayer?

Rahni has two jobs and both employers withheld FICA tax.From her first job,she earned $104,750 and from her second job she earned $24,150.How much can Rahni claim on her Form 1040 as excess social security tax paid in 2017?

The payroll period for a semiweekly schedule depositor ends on and is paid on Friday,July 10th.The employer must deposit the federal taxes withheld for this pay period on or before:

An employee who works for multiple employers will likely be under-withheld for federal income tax purposes and can owe additional taxes when filing his/her return.

Which of the following statements regarding the lookback period for 2017 is correct?

Employers with a payroll tax liability of less than $2,500 at the end of any quarter pay their tax liability:

Danita is married and is paid $5,325 semimonthly.She claims four withholding allowances.What amount of federal income tax will be withheld from Danita's gross wages for each payroll period? (Round your answer to 2 decimal places. )

Schedule H is completed by the household worker and remitted with his/her Form 1040.

When using the wage bracket method,withholding allowances are deducted before figuring the federal withholding amount.

When calculating the FUTA tax due,an employer can qualify for a 5.4% maximum credit for state unemployment taxes paid.

Mahmet earned wages of $128,700 during 2017.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in social security taxes for the year? (Round your answer to 2 decimal places. )

The amount of federal income taxes withheld should approximate the tax liability the employee will owe to the federal government.

Esmeralda is single and is paid $759 per week claiming two allowances.What is the amount of federal income tax withheld on Esmeralda's gross wages for the week? Use the wage bracket table in Appendix A at the end of the chapter.

The maximum penalty imposed on employers for incorrect or late filing of W-2's (subject to maximum penalties)is:

Form W-4 is used by employees to indicate the filing status and number of withholding allowances claimed on Form 1040.

Supplemental wages are only subject to FICA taxes and federal withholding taxes and are not subject to SUTA or FUTA taxes.

Although the federal unemployment tax is 6.0% of covered wages,employers receive a 5.4% federal credit if they make accurate and timely state unemployment tax deposits.

Brenda is a self-employed accountant.She has net earnings (profit)from her practice of $74,000.Her self-employment taxes for the year are: (Round your answer to 2 decimal places. )

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 payroll period for a semiweekly schedule depositor ends on and is paid on Friday,July 10^th.The employer must deposit the federal taxes withheld for this pay period on or before: