Question 1

In some states,employers may obtain reduced unemployment compensation rates by making voluntary contributions to the state fund.

Accepted Answer

A) True 
 B)False  True

Question 2

If an employer's quarterly tax liability is $525,it must be paid on or before the last day of the month following the end of the quarter.

Accepted Answer

A) True 
 B)False  True

Question 3

Directors of corporations who only attend and participate in board of directors' meetings are not covered as employees under FUTA.

Accepted Answer

A) True 
 B)False  True

Question 4

Voluntary contributions to a state's unemployment department are:

Accepted Answer

A)  allowed in all states. 
B)  designed to increase an employer's reserve account in order to lower the employer's contribution rate. 
C)  capable of being paid at any time with no time limit. 
D)  returned to the employer at the end of the following year. 
E)  sent directly to the IRS. 
A)  allowed in all states. 
B)  designed to increase an employer's reserve account in order to lower the employer's contribution rate. 
C)  capable of being paid at any time with no time limit. 
D)  returned to the employer at the end of the following year. 
E)  sent directly to the IRS.

Question 5

Educational assistance payments made to workers to improve skills required of their jobs are nontaxable for unemployment purposes.

Accepted Answer

A) True 
 B)False

Question 6

A federal unemployment tax is levied on:

Accepted Answer

A)  employees only. 
B)  both employers and employees. 
C)  employers only. 
D)  government employers only. 
E)  no one. 
A)  employees only. 
B)  both employers and employees. 
C)  employers only. 
D)  government employers only. 
E)  no one.

Question 7

Which of the following types of payments are not taxable wages for federal unemployment tax?

Accepted Answer

A)  Retirement pay 
B)  Cash prizes and awards for doing outstanding work 
C)  Dismissal pay 
D)  Bonuses as remuneration for services 
E)  Payment under a guaranteed annual wage plan 
A)  Retirement pay 
B)  Cash prizes and awards for doing outstanding work 
C)  Dismissal pay 
D)  Bonuses as remuneration for services 
E)  Payment under a guaranteed annual wage plan

Question 8

Form 940 must be mailed to the IRS by January 15.

Accepted Answer

A) True 
 B)False

Question 9

FUTA tax deposits cannot be paid electronically.

Accepted Answer

A) True 
 B)False

Question 10

Christmas gifts,excluding noncash gifts of nominal value,are taxable wages for unemployment purposes.

Accepted Answer

A) True 
 B)False

Question 11

In order to avoid a credit reduction for Title XII advances,a state must repay the loans by:

Accepted Answer

A)  the end of the year of the loans. 
B)  the end of the year the credit reduction is scheduled to take effect. 
C)  the end of the third year after the year of the loans. 
D)  November 10 of the year the credit reduction is scheduled to take effect. 
E)  June 30 of the year after the loans. 
A)  the end of the year of the loans. 
B)  the end of the year the credit reduction is scheduled to take effect. 
C)  the end of the third year after the year of the loans. 
D)  November 10 of the year the credit reduction is scheduled to take effect. 
E)  June 30 of the year after the loans.

Question 12

Included under the definition of employees for FUTA purposes are:

Accepted Answer

A)  independent contractors. 
B)  insurance agents paid solely on commission. 
C)  student nurses. 
D)  officers of a corporation. 
E)  members of partnerships. 
A)  independent contractors. 
B)  insurance agents paid solely on commission. 
C)  student nurses. 
D)  officers of a corporation. 
E)  members of partnerships.

Question 13

Advance payments for work done in the future are not taxable wages for FUTA purposes.

Accepted Answer

A) True 
 B)False

Question 14

There is a uniform rate of unemployment benefits payable by all states.

Accepted Answer

A) True 
 B)False

Question 15

Instruction 5-1
Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.
​
-Refer to Instruction 5-1.Hunter Company had a FUTA taxable payroll of $192,700 for the year.Since the company is located in a state that has 1.5% FUTA credit reduction due to unpaid loans,determine Hunter's FUTA tax liability for the year.

Accepted Answer

[$192,700

Question 16

Retirement pay is taxable wages for FUTA purposes.

Accepted Answer

A) True 
 B)False

Question 17

If a company is liable for a credit reduction (due to Title XII advance),this extra tax must be paid along with each of the required deposits made during the year.​

Accepted Answer

A) True 
 B)False

Question 18

Schedule A of Form 940 only has to be completed by employers who are subject to the Title XII credit reduction.​

Accepted Answer

A) True 
 B)False

Question 19

If an employer pays unemployment taxes to two states,it will have the same SUTA tax rate in both states.

Accepted Answer

A) True 
 B)False

Question 20

​An employer can use a credit card to pay the balance with Form 940 (under $500. )

Accepted Answer

A) True 
 B)False

In some states,employers may obtain reduced unemployment compensation rates by making voluntary contributions to the state fund.

If an employer's quarterly tax liability is $525,it must be paid on or before the last day of the month following the end of the quarter.

Directors of corporations who only attend and participate in board of directors' meetings are not covered as employees under FUTA.

Voluntary contributions to a state's unemployment department are:

Educational assistance payments made to workers to improve skills required of their jobs are nontaxable for unemployment purposes.

A federal unemployment tax is levied on:

Which of the following types of payments are not taxable wages for federal unemployment tax?

Form 940 must be mailed to the IRS by January 15.

FUTA tax deposits cannot be paid electronically.

Christmas gifts,excluding noncash gifts of nominal value,are taxable wages for unemployment purposes.

In order to avoid a credit reduction for Title XII advances,a state must repay the loans by:

Included under the definition of employees for FUTA purposes are:

Advance payments for work done in the future are not taxable wages for FUTA purposes.

There is a uniform rate of unemployment benefits payable by all states.

Retirement pay is taxable wages for FUTA purposes.

If a company is liable for a credit reduction (due to Title XII advance),this extra tax must be paid along with each of the required deposits made during the year.

Schedule A of Form 940 only has to be completed by employers who are subject to the Title XII credit reduction.

If an employer pays unemployment taxes to two states,it will have the same SUTA tax rate in both states.

An employer can use a credit card to pay the balance with Form 940 (under $500. )

The Need for Payroll and Personal Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Analyzing and Journalizing Payroll

Filters

Exam 5: Unemployment Compensation Taxes

In some states,employers may obtain reduced unemployment compensation rates by making voluntary contributions to the state fund.

If an employer's quarterly tax liability is $525,it must be paid on or before the last day of the month following the end of the quarter.

Directors of corporations who only attend and participate in board of directors' meetings are not covered as employees under FUTA.

Voluntary contributions to a state's unemployment department are:

Educational assistance payments made to workers to improve skills required of their jobs are nontaxable for unemployment purposes.

A federal unemployment tax is levied on:

Which of the following types of payments are not taxable wages for federal unemployment tax?

Form 940 must be mailed to the IRS by January 15.

FUTA tax deposits cannot be paid electronically.

Christmas gifts,excluding noncash gifts of nominal value,are taxable wages for unemployment purposes.

In order to avoid a credit reduction for Title XII advances,a state must repay the loans by:

Included under the definition of employees for FUTA purposes are:

Advance payments for work done in the future are not taxable wages for FUTA purposes.

There is a uniform rate of unemployment benefits payable by all states.

Retirement pay is taxable wages for FUTA purposes.

If a company is liable for a credit reduction (due to Title XII advance),this extra tax must be paid along with each of the required deposits made during the year.​

Schedule A of Form 940 only has to be completed by employers who are subject to the Title XII credit reduction.​

If an employer pays unemployment taxes to two states,it will have the same SUTA tax rate in both states.

​An employer can use a credit card to pay the balance with Form 940 (under $500. )

The Need for Payroll and Personal Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Analyzing and Journalizing Payroll

Filters

If a company is liable for a credit reduction (due to Title XII advance),this extra tax must be paid along with each of the required deposits made during the year.

Schedule A of Form 940 only has to be completed by employers who are subject to the Title XII credit reduction.

An employer can use a credit card to pay the balance with Form 940 (under $500. )