Exam 10: Payroll Taxes

Jan hired Mike to dog sit for her beloved but lonely pooch,Barney (while she worked)starting on January 4,2014 at $300 per month.Jan does not withhold any federal taxes. a.How much payroll tax should Jan pay for the year? b.If Mike came to Jan's house to walk Barney once a day and also walked other dogs in the neighborhood,is Jan required to complete Schedule H? Explain.

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?

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.

Wages subject to withholding and other employment taxes include all pay given to employees for services performed.

Which of the following statements regarding the lookback period for 2014 is correct?

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

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

Carolyne earns $150,000 per year.She is married and claims two withholding allowances.Use the percentage method for your calculations.(Round your answers two decimal places) a.What is her withholding per pay period if she is paid on a weekly basis (assume 52 weeks)? b.What is her withholding per pay period if she is paid on a semimonthly basis? c.What is her withholding per pay period if she is paid on a monthly basis? d.In each of these circumstances,should the annual withholding amount differ? Explain.

Danita is married and is paid $4,350 biweekly.She claims three withholding allowances.What amount of federal income tax will be withheld from Danita's gross wages for each payroll period? (Round your answer two decimal places)

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.

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

Jack is married,is paid $5,000 biweekly,and claims four allowances.What amount of federal income tax is withheld from his gross wages each pay period?

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

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?

Ladaris has two jobs.She earned $118,000 from her first job and $10,000 from her second job.How much total FICA taxes will Ladaris have withheld from her wages from working two jobs?

Joe is paid $975 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 answers two 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.

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

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?

A taxpayer with an AGI of $157,350 for 2014 pays estimated taxes.The taxpayer can avoid an underpayment penalty by paying:

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