Exam 9: Payroll, Estimated Payments, and Retirement Plans

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 only 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 FUTA tax is due from Willow Corporation for 2018, after the credit for state unemployment taxes?

In order for a pension plan to be considered a "qualified" retirement plan, the plan must satisfy certain minimum vesting requirements.

Which one of the following payroll tax deposit schedules is not a rule that applies for a class of employers?

Which of the following statements is true?

Employer deposits of withheld taxes may be made to any bank.

Redford's salary was $129,000 in 2018.What would his total combined FICA tax (Social Security & Medicare)withheld from his salary be for the year?

When taxpayers overpay Social Security taxes, the excess taxes may be claimed as a credit against their income tax liability.

Mark has two jobs during 2018.One employer withheld and paid FICA taxes on $80,200 of Mark's salary and the other employer withheld and paid FICA taxes on $52,800 in salary paid to Mark.Calculate the amount of Mark's credit for the overpayment of Social Security taxes that he should claim on his 2018 Form 1040.

Johnice's employer contributes $3,000 to a qualified retirement plan in 2018 for Johnice's retirement. a.Is the $3,000 deductible by Johnice's employer in 2018? Explain. b.Is the $3,000 income to Johnice in 2018? Explain. c.Is either the interest or dividend earnings on the $3,000 contribution taxable to Johnice in 2018? Explain.

What percentage of gross food and beverage sales is used in determining the amount of tips that an employer must report as allocated to employees?

If an employee does not complete a Form W-4, the employer must withhold tax as if the employee were single with no exemptions.

A nondeductible penalty may be imposed on underpayments of estimated taxes.

Which of the following statements about the FICA tax is not true?

What is the purpose of backup withholding?

Janet is single and claims two allowances on her Form W-4.In 2018, her salary is $1,800 per month.​ a.Use the percentage method to calculate the amount of Janet's withholding for a monthly pay period. b.Use the withholding tables to determine the amount of Janet's withholding for a monthly pay period.

The FUTA tax for 2018 is based on 6.2 percent of each employee's wages up to $10,000.

Payors are required to use backup withholding if:

Mark the correct answer.FICA taxes are:

The Wash Your Paws Self-Service Dog Wash, a California business, had two employees during the year.Lindsey worked from January through March 15 and earned $2,750.Avery worked for the whole year and earned $20,000.The State of California assesses unemployment tax at the rate of 5.4 percent.Calculate the total FUTA tax after the credit for the state unemployment tax.

For 2018, the maximum base for the Social Security portion of the FICA tax is: