Question 1

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 2

For semiweekly schedule depositors,taxes withheld from payrolls paid during the week are due to be remitted within three banking days after the date wages are paid.

Accepted Answer

A) True 
 B)False

Question 3

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 4

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

Question 5

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 1,2014.
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 6

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

Accepted Answer

A) True 
 B)False

Question 7

Irene earned wages of $118,200 during 2014.What share of FICA tax is Irene's employer responsible for in 2014?

Accepted Answer

A)  $8,950.50. 
B)  $8,967.90. 
C)  $9,024.50. 
D)  $9,042.30. 
A)  $8,950.50. 
B)  $8,967.90. 
C)  $9,024.50. 
D)  $9,042.30.

Question 8

Nikki's salary is $209,950 in 2014.How much social security and Medicare taxes will be withheld from Nikki's salary for the year?

Accepted Answer

The answer of Nikki's salary is $209,950 in 2014.How much...

Question 9

Maeda Company has the following employees on the payroll:   Using the information above,calculate the payroll taxes (FICA,federal withholding)for each employee for one payroll period.Assume that Maeda Company receives the maximum credit for state unemployment contributions.Use the percentage method for calculating FIT.

Accepted Answer

The answer of Maeda Company has the following employees on...

Question 10

Mahmet earned wages of $118,650 during 2014.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in Medicare taxes for the year?

Accepted Answer

A)  $1,696.50. 
B)  $1,696.60. 
C)  $1,703.43. 
D)  $1,720.43. 
A)  $1,696.50. 
B)  $1,696.60. 
C)  $1,703.43. 
D)  $1,720.43.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Juan is married,is paid 2,000 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?

Accepted Answer

A)  $223.90. 
B)  $242.90. 
C)  $261.90. 
D)  $299.90. 
A)  $223.90. 
B)  $242.90. 
C)  $261.90. 
D)  $299.90.

Question 13

Irene earned wages of $118,200 during 2014.How much will Irene's employer withhold in Medicare taxes for the year?

Accepted Answer

A)  $1,654.80. 
B)  $1,713.90. 
C)  $1,773.00. 
D)  $1,820.28. 
A)  $1,654.80. 
B)  $1,713.90. 
C)  $1,773.00. 
D)  $1,820.28.

Question 14

Angie earned $120,000 during 2014.She is single,claims two withholding allowances,and is paid monthly.How much FICA tax must Angie's employer remit to the federal government in 2014?

Accepted Answer

A)  $17,901.00. 
B)  $17,988.00. 
C)  $18,273.00. 
D)  $18,360.00. 
A)  $17,901.00. 
B)  $17,988.00. 
C)  $18,273.00. 
D)  $18,360.00.

Question 15

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 16

Employers with a payroll tax liability of less than $2,500 at the end of a quarter can pay the payroll tax liability at the end of the next month following the quarter with Form 941.

Accepted Answer

A) True 
 B)False

Question 17

Kathy received a commission of $12,000 from her employer and she also earns semimonthly wages of $2,500.Which of the following federal withholding methods is incorrect?

Accepted Answer

A)  If taxes have already been withheld from Kathy's wages separately,the commission is added to the wages and federal taxes are withheld as if the total were a single payment.Subtract the tax already withheld and withhold the remaining tax from the supplemental wages. 
B)  If taxes have already been withheld from Kathy's wages,the commission is taxed at a flat rate of 28%. 
C)  If taxes have not already been withheld from Kathy's regular wage,the commission is added to the wages and withheld as if the total were a single payment. 
D)  If taxes have already been withheld from Kathy's wages separately,the commission is subject to backup withholding of 25%. 
A)  If taxes have already been withheld from Kathy's wages separately,the commission is added to the wages and federal taxes are withheld as if the total were a single payment.Subtract the tax already withheld and withhold the remaining tax from the supplemental wages. 
B)  If taxes have already been withheld from Kathy's wages,the commission is taxed at a flat rate of 28%. 
C)  If taxes have not already been withheld from Kathy's regular wage,the commission is added to the wages and withheld as if the total were a single payment. 
D)  If taxes have already been withheld from Kathy's wages separately,the commission is subject to backup withholding of 25%.

Question 18

Nikki's salary is $209,950 in 2014.She is paid on a biweekly basis,is single and claims zero allowances.
a.What is Nikki's federal tax withholding per pay period?
b.What is Nikki's FICA withholding per pay period before she reaches the social security limit?

Accepted Answer

a.$2,015.2

Question 19

Starting in 2014,the credit against "payroll taxes" for providing COBRA premium assistance to eligible individuals is recorded using Form 941-X.

Accepted Answer

A) True 
 B)False

Question 20

Ben has 2 jobs and both employers withhold FICA taxes.From his first job,Ben earned $85,034 and from his second job,he earned $33,496.How much can Ben claim as additional payment on his Form 1040 as excess social security tax paid in 2014?

Accepted Answer

A)  $0. 
B)  $22.19. 
C)  $94.86. 
D)  $117.05. 
A)  $0. 
B)  $22.19. 
C)  $94.86. 
D)  $117.05.

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

For semiweekly schedule depositors,taxes withheld from payrolls paid during the week are due to be remitted within three banking days after the date wages are paid.

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

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

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

Irene earned wages of $118,200 during 2014.What share of FICA tax is Irene's employer responsible for in 2014?

Nikki's salary is $209,950 in 2014.How much social security and Medicare taxes will be withheld from Nikki's salary for the year?

Mahmet earned wages of $118,650 during 2014.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in Medicare taxes for the year?

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

Juan is married,is paid 2,000 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?

Irene earned wages of $118,200 during 2014.How much will Irene's employer withhold in Medicare taxes for the year?

Angie earned $120,000 during 2014.She is single,claims two withholding allowances,and is paid monthly.How much FICA tax must Angie's employer remit to the federal government in 2014?

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.

Employers with a payroll tax liability of less than $2,500 at the end of a quarter can pay the payroll tax liability at the end of the next month following the quarter with Form 941.

Kathy received a commission of $12,000 from her employer and she also earns semimonthly wages of $2,500.Which of the following federal withholding methods is incorrect?

Nikki's salary is $209,950 in 2014.She is paid on a biweekly basis,is single and claims zero allowances. a.What is Nikki's federal tax withholding per pay period? b.What is Nikki's FICA withholding per pay period before she reaches the social security limit?

Starting in 2014,the credit against "payroll taxes" for providing COBRA premium assistance to eligible individuals is recorded using Form 941-X.

Ben has 2 jobs and both employers withhold FICA taxes.From his first job,Ben earned $85,034 and from his second job,he earned $33,496.How much can Ben claim as additional payment on his Form 1040 as excess social security tax paid in 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

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

For semiweekly schedule depositors,taxes withheld from payrolls paid during the week are due to be remitted within three banking days after the date wages are paid.

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

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

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

Irene earned wages of $118,200 during 2014.What share of FICA tax is Irene's employer responsible for in 2014?

Nikki's salary is $209,950 in 2014.How much social security and Medicare taxes will be withheld from Nikki's salary for the year?

Mahmet earned wages of $118,650 during 2014.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in Medicare taxes for the year?

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

Juan is married,is paid 2,000 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?

Irene earned wages of $118,200 during 2014.How much will Irene's employer withhold in Medicare taxes for the year?

Angie earned $120,000 during 2014.She is single,claims two withholding allowances,and is paid monthly.How much FICA tax must Angie's employer remit to the federal government in 2014?

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.

Employers with a payroll tax liability of less than $2,500 at the end of a quarter can pay the payroll tax liability at the end of the next month following the quarter with Form 941.

Kathy received a commission of $12,000 from her employer and she also earns semimonthly wages of $2,500.Which of the following federal withholding methods is incorrect?

Nikki's salary is $209,950 in 2014.She is paid on a biweekly basis,is single and claims zero allowances. a.What is Nikki's federal tax withholding per pay period? b.What is Nikki's FICA withholding per pay period before she reaches the social security limit?

Starting in 2014,the credit against "payroll taxes" for providing COBRA premium assistance to eligible individuals is recorded using Form 941-X.

Ben has 2 jobs and both employers withhold FICA taxes.From his first job,Ben earned $85,034 and from his second job,he earned $33,496.How much can Ben claim as additional payment on his Form 1040 as excess social security tax paid in 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