Question 1

The FUTA tax is a voluntary unemployment tax which an employer may or may not wish to contribute toward.

Accepted Answer

A) True 
 B)False  False

Question 2

An individual who expects to receive more than $500 of income from sources other than wages meets the requirements for having to file quarterly estimated tax payments.

Accepted Answer

A) True 
 B)False  False

Question 3

An employee is reimbursed for travel and other ordinary and necessary expenses.Under what circumstances would income tax be withheld from the employee on these amounts?

Accepted Answer

Reimbursements of travel and other employee business expense made under a nonaccountable plan must be included as wages and the amounts are subject to withholding.The amount of withholding may vary with the type of nonaccountable plan in use.

Question 4

Choose the incorrect answer.In completing a Form W-4, employees may claim extra allowances:

Accepted Answer

A) If they are paying deductible alimony. 
B) If they have tax credits. 
C) If they expect to have large amounts of itemized deductions. 
D) If they have high levels of interest and dividend income. 
A) If they are paying deductible alimony. 
B) If they have tax credits. 
C) If they expect to have large amounts of itemized deductions. 
D) If they have high levels of interest and dividend income.

Question 5

When required, gambling winnings are reported by the gambling establishment on Form 1099-MISC.

Accepted Answer

A) True 
 B)False

Question 6

Richard is employed by a major defense contractor and earns $156,000 in 2018.Calculate:
a.The amount of Social Security tax withheld from his income
b.The amount of Medicare tax withheld from his income
c.The amount of FUTA withheld from his income

Accepted Answer

a.$128,400 maximum times 6.2%

Question 7

Clay changes jobs in 2018 and decides to roll his $50,000 retirement plan balance from his old employer's plan into an IRA.He instructs the trustee of the retirement plan to transfer the money directly to the IRA he has chosen.What are the tax consequences of the transfer to Clay? Explain.

Accepted Answer

There are no tax consequences.

Question 8

The FUTA tax is paid by:

Accepted Answer

A) Employees only. 
B) Employers only. 
C) Employers and employees. 
D) Neither employers nor employees. 
E) The federal government. 
A) Employees only. 
B) Employers only. 
C) Employers and employees. 
D) Neither employers nor employees. 
E) The federal government.

Question 9

Which one of the following forms must an employer provide to his employee by January 31 of the following year?

Accepted Answer

A) W-3 
B) W-2 
C) W-4 
D) 941 
E) 1040 
A) W-3 
B) W-2 
C) W-4 
D) 941 
E) 1040

Question 10

Taxpayers with self-employment income who also have Form W-2 wage income from employment may be able to avoid making estimated tax payments by filing a Form W-4 and increasing the amount of their withholding.

Accepted Answer

A) True 
 B)False

Question 11

Karen is single with no dependents and earns $18,000 a year.She gives her employer a Form W-4 on which she claims 17 allowances.What is her employer required to do about the Form W-4? Explain.

Accepted Answer

The employer is not required t

Question 12

A credit against the FUTA tax is available for state unemployment tax paid by the employer.

Accepted Answer

A) True 
 B)False

Question 13

If a husband and wife both work, they must divide their withholding allowances equally on their W-4 Forms.

Accepted Answer

A) True 
 B)False

Question 14

Provide answers to the following questions:
a.What form does an employer use to report wages to an employee?
b.When must the employer give this form to the employee?
c.What form does an employer use to report wages to the Social Security Administration?
d.When must the employer file the form with the Social Security Administration?

Accepted Answer

a.Form W-2
b.In general, the employer mu

Question 15

Steve is a single man who lives by himself.He has one job as a computer technician.How many withholding allowances must he claim?

Accepted Answer

A) 2 
B) 3 
C) 5 
D) 10 
E) He can claim any number of withholding allowances that he believes will leave him with proper withholding. 
A) 2 
B) 3 
C) 5 
D) 10 
E) He can claim any number of withholding allowances that he believes will leave him with proper withholding.

Question 16

Which of the following statements is true of a distribution rollover (not a trustee-to-trustee transfer)from a retirement plan?

Accepted Answer

A) The taxpayer must instruct the trustee of the retirement plan to transfer assets to the trustee of another plan. 
B) No withholding is required. 
C) In one year, there is no limit to the number of times a taxpayer can request a distribution rollover from one IRA to another IRA. 
D) Assuming there are no unusual events, the taxpayer has a maximum of 60 days in which to transfer funds to a new plan to avoid current taxes and penalties. 
E) All of the above are true. 
A) The taxpayer must instruct the trustee of the retirement plan to transfer assets to the trustee of another plan. 
B) No withholding is required. 
C) In one year, there is no limit to the number of times a taxpayer can request a distribution rollover from one IRA to another IRA. 
D) Assuming there are no unusual events, the taxpayer has a maximum of 60 days in which to transfer funds to a new plan to avoid current taxes and penalties. 
E) All of the above are true.

Question 17

In 2018, Willow Corporation had three employees.Two of the employees worked full-time and earned salaries of $25,000 each.The third employee worked part-time and earned $4,000.The employer timely paid state unemployment tax equal to 5.4 percent of each employee's wages up to $7,000.How much unemployment tax was paid to the state from Willow Corporation for 2018?

Accepted Answer

A) $136 
B) $168 
C) $918 
D) $972 
E) $1,134 
A) $136 
B) $168 
C) $918 
D) $972 
E) $1,134

Question 18

If taxpayers fail to provide their bank with a taxpayer identification number, they are subject to backup withholding on interest payments.

Accepted Answer

A) True 
 B)False

Question 19

Under a defined contribution plan, the contribution made on behalf of the employee is determined using a formula dependent on the employee's current compensation.

Accepted Answer

A) True 
 B)False

Question 20

The Foemina Corporation has two employees, Nancy and Penny.
a.If Nancy earns wages of $17,000 for 2018, calculate the total amount of the FICA tax that must be paid:​​​by Nancy​by Foemina Corporation​Total​​
b.If Penny earns wages of $130,000 for 2018, calculate the total amount of the FICA tax that must be paid:​​​by Penny​by Foemina Corporation​Total

Accepted Answer

a. by Nancy @#LAT-DLM&
  @#LAT-DLM&by Fo

The FUTA tax is a voluntary unemployment tax which an employer may or may not wish to contribute toward.

An individual who expects to receive more than $500 of income from sources other than wages meets the requirements for having to file quarterly estimated tax payments.

An employee is reimbursed for travel and other ordinary and necessary expenses.Under what circumstances would income tax be withheld from the employee on these amounts?

Choose the incorrect answer.In completing a Form W-4, employees may claim extra allowances:

When required, gambling winnings are reported by the gambling establishment on Form 1099-MISC.

Richard is employed by a major defense contractor and earns $156,000 in 2018.Calculate: a.The amount of Social Security tax withheld from his income b.The amount of Medicare tax withheld from his income c.The amount of FUTA withheld from his income

Clay changes jobs in 2018 and decides to roll his $50,000 retirement plan balance from his old employer's plan into an IRA.He instructs the trustee of the retirement plan to transfer the money directly to the IRA he has chosen.What are the tax consequences of the transfer to Clay? Explain.

The FUTA tax is paid by:

Which one of the following forms must an employer provide to his employee by January 31 of the following year?

Taxpayers with self-employment income who also have Form W-2 wage income from employment may be able to avoid making estimated tax payments by filing a Form W-4 and increasing the amount of their withholding.

Karen is single with no dependents and earns $18,000 a year.She gives her employer a Form W-4 on which she claims 17 allowances.What is her employer required to do about the Form W-4? Explain.

A credit against the FUTA tax is available for state unemployment tax paid by the employer.

If a husband and wife both work, they must divide their withholding allowances equally on their W-4 Forms.

Steve is a single man who lives by himself.He has one job as a computer technician.How many withholding allowances must he claim?

Which of the following statements is true of a distribution rollover (not a trustee-to-trustee transfer)from a retirement plan?

If taxpayers fail to provide their bank with a taxpayer identification number, they are subject to backup withholding on interest payments.

Under a defined contribution plan, the contribution made on behalf of the employee is determined using a formula dependent on the employee's current compensation.

The Individual Income Tax Return

Gross Income and Exclusions

Additional Income Part 1

Additional Income Part 2

Deductions and Adjustments to Income

Accounting Methods and Taxes

Tax Credits

Depreciation and Sale of Business Property

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 9: Payroll, Estimated Payments, and Retirement Plans

The FUTA tax is a voluntary unemployment tax which an employer may or may not wish to contribute toward.

An individual who expects to receive more than $500 of income from sources other than wages meets the requirements for having to file quarterly estimated tax payments.

An employee is reimbursed for travel and other ordinary and necessary expenses.Under what circumstances would income tax be withheld from the employee on these amounts?

Choose the incorrect answer.In completing a Form W-4, employees may claim extra allowances:

When required, gambling winnings are reported by the gambling establishment on Form 1099-MISC.

Richard is employed by a major defense contractor and earns $156,000 in 2018.Calculate: a.The amount of Social Security tax withheld from his income b.The amount of Medicare tax withheld from his income c.The amount of FUTA withheld from his income

Clay changes jobs in 2018 and decides to roll his $50,000 retirement plan balance from his old employer's plan into an IRA.He instructs the trustee of the retirement plan to transfer the money directly to the IRA he has chosen.What are the tax consequences of the transfer to Clay? Explain.

The FUTA tax is paid by:

Which one of the following forms must an employer provide to his employee by January 31 of the following year?

Taxpayers with self-employment income who also have Form W-2 wage income from employment may be able to avoid making estimated tax payments by filing a Form W-4 and increasing the amount of their withholding.

Karen is single with no dependents and earns $18,000 a year.She gives her employer a Form W-4 on which she claims 17 allowances.What is her employer required to do about the Form W-4? Explain.

A credit against the FUTA tax is available for state unemployment tax paid by the employer.

If a husband and wife both work, they must divide their withholding allowances equally on their W-4 Forms.

Steve is a single man who lives by himself.He has one job as a computer technician.How many withholding allowances must he claim?

Which of the following statements is true of a distribution rollover (not a trustee-to-trustee transfer)from a retirement plan?

If taxpayers fail to provide their bank with a taxpayer identification number, they are subject to backup withholding on interest payments.

Under a defined contribution plan, the contribution made on behalf of the employee is determined using a formula dependent on the employee's current compensation.

The Individual Income Tax Return

Gross Income and Exclusions

Additional Income Part 1

Additional Income Part 2

Deductions and Adjustments to Income

Accounting Methods and Taxes

Tax Credits

Depreciation and Sale of Business Property

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters