Exam 10: Payroll Taxes

Arlene is a college professor earning $90,000 and also has a sole proprietor consulting practice where she earned $28,000 for 2014.How much of her total earnings are subject to self-employment tax for 2014?

(Multiple Choice)

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Question 101

A taxpayer who has overpaid the social security portion of the FICA tax because his or her combined taxable income from multiple jobs exceeds the annual wage base is entitled to receive the excess as a refund even if there is federal tax owed on the 1040 return.

(True/False)

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Question 102

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

(Multiple Choice)

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Question 103

A taxpayer pays 6.2% of taxable wages for both social security and Medicare taxes.

(True/False)

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Question 104

K.Kruse Designs has the following employees: K.

(Essay)

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Question 105

The penalty for the filing of W-2s containing mismatched names and social security numbers is:

(Multiple Choice)

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Question 106

Supplemental wages are subject to the following taxes:

(Multiple Choice)

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Question 107

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

(True/False)

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Question 108

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.

(Multiple Choice)

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Question 109

Daniel is a computer technical support representative earning $95,000 per year and also has a sole proprietor consulting business where he earned $28,000 for 2014.How much of his total earnings are subject to self-employment tax for 2014?

(Multiple Choice)

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Question 110

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

(True/False)

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Question 111

FICA taxes are collected equally from the employee and the employer.

(True/False)

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Question 112

Taxpayers who employ household workers must file a quarterly 941 return and an annual 940 return.

(True/False)

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Question 113

Claude works as a teacher during the year at the local high school.He also prepares taxes on a part-time basis.During 2014,Claude earned $84,800 from his job as a teacher.He also earned $12,000 preparing taxes from January to April,2014.He operates his tax preparation business as a sole proprietorship.Claude estimates that he will owe $2,036 more in income taxes for 2014.Explain what Claude should do so that he does not incur any underpayment penalties.

(Essay)

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Question 114

On January 3,2014,Norman employed a part-time household worker in his home.He paid the household worker $400 per month for 2014.What amount of FICA taxes is Norman required to record on Schedule H?

(Multiple Choice)

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Question 115

The Anderson Company started its business on August 2,2014.On August 15^th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 29,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?

(Multiple Choice)

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Question 116

Lynita has two jobs and earned $92,316 from her first job and $25,000 from her second job.How much total FICA taxes will Lynita have withheld from her wages from working two jobs?

(Multiple Choice)

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Question 117

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

(Multiple Choice)

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Question 118

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.

(True/False)

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Question 119

A taxpayer with an AGI of $300,000 for 2014 pays estimated taxes.The taxpayer can avoid an underpayment penalty by paying:

(Multiple Choice)

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Question 120

Showing 101 - 120 of 125

Arlene is a college professor earning $90,000 and also has a sole proprietor consulting practice where she earned $28,000 for 2014.How much of her total earnings are subject to self-employment tax for 2014?

A taxpayer who has overpaid the social security portion of the FICA tax because his or her combined taxable income from multiple jobs exceeds the annual wage base is entitled to receive the excess as a refund even if there is federal tax owed on the 1040 return.

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

A taxpayer pays 6.2% of taxable wages for both social security and Medicare taxes.

K.Kruse Designs has the following employees: K.

The penalty for the filing of W-2s containing mismatched names and social security numbers is:

Supplemental wages are subject to the following taxes:

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

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.

Daniel is a computer technical support representative earning $95,000 per year and also has a sole proprietor consulting business where he earned $28,000 for 2014.How much of his total earnings are subject to self-employment tax for 2014?

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

FICA taxes are collected equally from the employee and the employer.

Taxpayers who employ household workers must file a quarterly 941 return and an annual 940 return.

On January 3,2014,Norman employed a part-time household worker in his home.He paid the household worker $400 per month for 2014.What amount of FICA taxes is Norman required to record on Schedule H?

The Anderson Company started its business on August 2,2014.On August 15^th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 29,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?

Lynita has two jobs and earned $92,316 from her first job and $25,000 from her second job.How much total FICA taxes will Lynita have withheld from her wages from working two jobs?

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

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.

A taxpayer with an AGI of $300,000 for 2014 pays estimated taxes.The taxpayer can avoid an underpayment penalty by paying:

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

Arlene is a college professor earning $90,000 and also has a sole proprietor consulting practice where she earned $28,000 for 2014.How much of her total earnings are subject to self-employment tax for 2014?

A taxpayer who has overpaid the social security portion of the FICA tax because his or her combined taxable income from multiple jobs exceeds the annual wage base is entitled to receive the excess as a refund even if there is federal tax owed on the 1040 return.

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

A taxpayer pays 6.2% of taxable wages for both social security and Medicare taxes.

K.Kruse Designs has the following employees: K.

The penalty for the filing of W-2s containing mismatched names and social security numbers is:

Supplemental wages are subject to the following taxes:

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

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.

Daniel is a computer technical support representative earning $95,000 per year and also has a sole proprietor consulting business where he earned $28,000 for 2014.How much of his total earnings are subject to self-employment tax for 2014?

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

FICA taxes are collected equally from the employee and the employer.

Taxpayers who employ household workers must file a quarterly 941 return and an annual 940 return.

On January 3,2014,Norman employed a part-time household worker in his home.He paid the household worker $400 per month for 2014.What amount of FICA taxes is Norman required to record on Schedule H?

The Anderson Company started its business on August 2,2014.On August 15th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 29,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?

Lynita has two jobs and earned $92,316 from her first job and $25,000 from her second job.How much total FICA taxes will Lynita have withheld from her wages from working two jobs?

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

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.

A taxpayer with an AGI of $300,000 for 2014 pays estimated taxes.The taxpayer can avoid an underpayment penalty by paying:

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

The Anderson Company started its business on August 2,2014.On August 15^th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 29,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?