Question 1

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:

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.

Question 2

If on any day during the month,an employer accumulates $100,000 or more in tax liability,the taxes must be deposited:

Accepted Answer

A)  By the next banking day. 
B)  Before the close of the business day in which the liability occurs. 
C)  By the last day of the week if the employer is a monthly depositor. 
D)  By either the following Wednesday or Friday if the employer is a semiweekly schedule depositor. 
A)  By the next banking day. 
B)  Before the close of the business day in which the liability occurs. 
C)  By the last day of the week if the employer is a monthly depositor. 
D)  By either the following Wednesday or Friday if the employer is a semiweekly schedule depositor.

Question 3

Sergio is single,is paid $2,400 per week,and claims one withholding allowance.What is the amount of federal income tax withheld from Sergio's gross wages for the week using the percentage method? (Round your answer two decimal places)

Accepted Answer

A)  $490.50. 
B)  $507.36. 
C)  $507.64. 
D)  $528.64. 
A)  $490.50. 
B)  $507.36. 
C)  $507.64. 
D)  $528.64.

Question 4

A payer must request from any U.S.person (or resident alien)that he or she complete Form W-9 to certify that all of the following are true except:

Accepted Answer

A)  The taxpayer identification number is correct. 
B)  The taxpayer is subject to backup withholding. 
C)  The taxpayer is exempt from backup withholding if a U.S.exempt payee. 
D)  The taxpayer is not subject to backup withholding. 
A)  The taxpayer identification number is correct. 
B)  The taxpayer is subject to backup withholding. 
C)  The taxpayer is exempt from backup withholding if a U.S.exempt payee. 
D)  The taxpayer is not subject to backup withholding.

Question 5

The payroll period for a semiweekly schedule depositor ends on and is paid on Friday,July 11,2014.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 6

In a large food or beverage establishment,on what form or schedule is any tip shortfall from a directly tipped employee recorded?

Accepted Answer

A)  Form 4070. 
B)  Form 8027. 
C)  Form 8109. 
D)  Schedule 
A)  Form 4070. 
B)  Form 8027. 
C)  Form 8109. 
D)  Schedule

Question 7

Employers withhold income tax only on tips claimed by employees who are tipped.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Form 1040-ES is filed along with the Form 1040 when a taxpayer makes estimated payments during the year.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  $0,it is the responsibility of the payer (requester)to have the correct information. 
B)  $50 for each failure to complete the W-9. 
C)  $500 maximum for failure to complete any W-9 forms as required. 
D)  $0,but the taxpayer can be subject to fines and/or imprisonment if caught by an IRS agent. 
A)  $0,it is the responsibility of the payer (requester)to have the correct information. 
B)  $50 for each failure to complete the W-9. 
C)  $500 maximum for failure to complete any W-9 forms as required. 
D)  $0,but the taxpayer can be subject to fines and/or imprisonment if caught by an IRS agent.

Question 11

Employees claim withholding allowances on Form W-4.For each withholding allowance claimed,their withholding base is reduced by what amount for calendar year 2014?

Accepted Answer

A)  $3,800. 
B)  $3,850. 
C)  $3,900. 
D)  $3,950. 
A)  $3,800. 
B)  $3,850. 
C)  $3,900. 
D)  $3,950.

Question 12

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 13

Household workers are subject to FUTA tax only if cash wages of $1,400 or more are paid in any calendar quarter during the prior and/or current year.

Accepted Answer

A) True 
 B)False

Question 14

Angie earned $120,000 during 2014.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in Medicare taxes for 2014?

Accepted Answer

A)  $1,669.50. 
B)  $1,696.50. 
C)  $16,800.00. 
D)  $1,740.00. 
A)  $1,669.50. 
B)  $1,696.50. 
C)  $16,800.00. 
D)  $1,740.00.

Question 15

Maeda Company has the following employees on the payroll:
   Using the information above,what are the annual amounts that would be used to complete a Form W-2 for Hiroko.

Accepted Answer

a.Gross Wages: b.Federal Withholding: c.

Question 16

Shanita is a self-employed event planner.She has net earnings (profit)from her business of $63,220.Her self-employment taxes for the year are: (Round your answer two decimal places)

Accepted Answer

A)  $8,923.70. 
B)  $8,932.70. 
C)  $9,639.00. 
D)  $9,672.66. 
A)  $8,923.70. 
B)  $8,932.70. 
C)  $9,639.00. 
D)  $9,672.66.

Question 17

Harry has two jobs.He earns $117,700 from his first job and $10,000 from his second job.How much total FICA withholding will Harry have withheld from his wages from working two jobs?

Accepted Answer

A)  $9,105.65. 
B)  $9,149.05. 
C)  $9,725.65. 
D)  $9,769.05. 
A)  $9,105.65. 
B)  $9,149.05. 
C)  $9,725.65. 
D)  $9,769.05.

Question 18

Ebony earned $86,760 during 2014.She is single,paid semimonthly,and claims one withholding allowance.How much will Ebony's employer withhold from her,in total for each pay period for FICA and federal withholding taxes?

Accepted Answer

A)  $943.05. 
B)  $946.20. 
C)  $946.23. 
D)  $984.20. 
A)  $943.05. 
B)  $946.20. 
C)  $946.23. 
D)  $984.20.

Question 19

If a taxpayer works for more than one employer during the year,how much in FUTA taxes is remitted in the name of the taxpayer?

Accepted Answer

A)  Only the first employer is required to remit FUTA taxes on the wages earned. 
B)  If the employee earns more than $7,000 at the first job,all other employers are exempt from paying FUTA taxes for this employee during the year. 
C)  If the employee earns less than $7,000 at the first job,the next employer must remit FUTA taxes until the employee has earned a total of $7,000. 
D)  Both employers must remit FUTA taxes they pay to the employee on the first $7,000 of wages earned by the employee at each job. 
A)  Only the first employer is required to remit FUTA taxes on the wages earned. 
B)  If the employee earns more than $7,000 at the first job,all other employers are exempt from paying FUTA taxes for this employee during the year. 
C)  If the employee earns less than $7,000 at the first job,the next employer must remit FUTA taxes until the employee has earned a total of $7,000. 
D)  Both employers must remit FUTA taxes they pay to the employee on the first $7,000 of wages earned by the employee at each job.

Question 20

Goshen works part-time for PCN,Inc.and earned $6,400.He also works part-time for QDO,Inc.and earned $7,300 for 2014.How much FUTA tax are his employers required to remit to the IRS? Assume the employer receives the maximum credit for state unemployment taxes and Goshen started on September 1,2014.

Accepted Answer

A)  $42.00. 
B)  $80.40. 
C)  $83.08. 
D)  $107.20. 
A)  $42.00. 
B)  $80.40. 
C)  $83.08. 
D)  $107.20.

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:

If on any day during the month,an employer accumulates $100,000 or more in tax liability,the taxes must be deposited:

Sergio is single,is paid $2,400 per week,and claims one withholding allowance.What is the amount of federal income tax withheld from Sergio's gross wages for the week using the percentage method? (Round your answer two decimal places)

A payer must request from any U.S.person (or resident alien)that he or she complete Form W-9 to certify that all of the following are true except:

The payroll period for a semiweekly schedule depositor ends on and is paid on Friday,July 11,2014.The employer must deposit the federal taxes withheld for this pay period on or before:

In a large food or beverage establishment,on what form or schedule is any tip shortfall from a directly tipped employee recorded?

Employers withhold income tax only on tips claimed by employees who are tipped.

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

Form 1040-ES is filed along with the Form 1040 when a taxpayer makes estimated payments during the year.

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

Employees claim withholding allowances on Form W-4.For each withholding allowance claimed,their withholding base is reduced by what amount for calendar year 2014?

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

Household workers are subject to FUTA tax only if cash wages of $1,400 or more are paid in any calendar quarter during the prior and/or current year.

Angie earned $120,000 during 2014.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in Medicare taxes for 2014?

Maeda Company has the following employees on the payroll: Using the information above,what are the annual amounts that would be used to complete a Form W-2 for Hiroko.

Shanita is a self-employed event planner.She has net earnings (profit)from her business of $63,220.Her self-employment taxes for the year are: (Round your answer two decimal places)

Harry has two jobs.He earns $117,700 from his first job and $10,000 from his second job.How much total FICA withholding will Harry have withheld from his wages from working two jobs?

Ebony earned $86,760 during 2014.She is single,paid semimonthly,and claims one withholding allowance.How much will Ebony's employer withhold from her,in total for each pay period for FICA and federal withholding taxes?

If a taxpayer works for more than one employer during the year,how much in FUTA taxes is remitted in the name of the taxpayer?

Goshen works part-time for PCN,Inc.and earned $6,400.He also works part-time for QDO,Inc.and earned $7,300 for 2014.How much FUTA tax are his employers required to remit to the IRS? Assume the employer receives the maximum credit for state unemployment taxes and Goshen started on September 1,2014.

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, and Income From Flow-Through Entities

Tax Credits

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

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:

If on any day during the month,an employer accumulates $100,000 or more in tax liability,the taxes must be deposited:

Sergio is single,is paid $2,400 per week,and claims one withholding allowance.What is the amount of federal income tax withheld from Sergio's gross wages for the week using the percentage method? (Round your answer two decimal places)

A payer must request from any U.S.person (or resident alien)that he or she complete Form W-9 to certify that all of the following are true except:

The payroll period for a semiweekly schedule depositor ends on and is paid on Friday,July 11,2014.The employer must deposit the federal taxes withheld for this pay period on or before:

In a large food or beverage establishment,on what form or schedule is any tip shortfall from a directly tipped employee recorded?

Employers withhold income tax only on tips claimed by employees who are tipped.

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

Form 1040-ES is filed along with the Form 1040 when a taxpayer makes estimated payments during the year.

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

Employees claim withholding allowances on Form W-4.For each withholding allowance claimed,their withholding base is reduced by what amount for calendar year 2014?

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

Household workers are subject to FUTA tax only if cash wages of $1,400 or more are paid in any calendar quarter during the prior and/or current year.

Angie earned $120,000 during 2014.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in Medicare taxes for 2014?

Maeda Company has the following employees on the payroll: Using the information above,what are the annual amounts that would be used to complete a Form W-2 for Hiroko.

Shanita is a self-employed event planner.She has net earnings (profit)from her business of $63,220.Her self-employment taxes for the year are: (Round your answer two decimal places)

Harry has two jobs.He earns $117,700 from his first job and $10,000 from his second job.How much total FICA withholding will Harry have withheld from his wages from working two jobs?

Ebony earned $86,760 during 2014.She is single,paid semimonthly,and claims one withholding allowance.How much will Ebony's employer withhold from her,in total for each pay period for FICA and federal withholding taxes?

If a taxpayer works for more than one employer during the year,how much in FUTA taxes is remitted in the name of the taxpayer?

Goshen works part-time for PCN,Inc.and earned $6,400.He also works part-time for QDO,Inc.and earned $7,300 for 2014.How much FUTA tax are his employers required to remit to the IRS? Assume the employer receives the maximum credit for state unemployment taxes and Goshen started on September 1,2014.

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, and Income From Flow-Through Entities

Tax Credits

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