Question 1

In the case of a part-time employee,the employer is not liable to pay any of the employee's earnings.

Accepted Answer

A) True 
 B)False

Question 2

Insurance agents paid solely on a commission basis are not considered employees under FUTA.

Accepted Answer

A) True 
 B)False

Question 3

Once a company attains the status of employer for FUTA purposes,that status continues for four calendar years.

Accepted Answer

A) True 
 B)False

Question 4

If an employer is subject to a credit reduction because of Title XII advances,the penalty for the entire year will be paid only with the deposit for the last quarter of the year.

Accepted Answer

A) True 
 B)False

Question 5

The person who is not an authorized signer of Form 940 is:

Accepted Answer

A)  the individual,if a sole proprietorship. 
B)  the accountant from the company's independent auditing firm. 
C)  the president,if a corporation. 
D)  a fiduciary,if a trust. 
E)  All of the above are authorized signers. 
A)  the individual,if a sole proprietorship. 
B)  the accountant from the company's independent auditing firm. 
C)  the president,if a corporation. 
D)  a fiduciary,if a trust. 
E)  All of the above are authorized signers.

Question 6

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.Sparks Company's SUTA rate for next year is 3.25% because its reserve ratio falls into the state's 10% to less than 12% category [(contributions - benefits paid)÷ average payroll = $414,867 ÷ $3,521,790 = 11.78%].If the next bracket (12% to less than 14%)would give the company a lower tax rate of 3.05%,what would be the least amount of the voluntary contribution needed to qualify the company for the 3.05% SUTA tax rate?

Accepted Answer

The answer of Instruction 5-1
Use the net FUTA tax rate...

Question 7

For FUTA purposes,an employer can be any one of the following except:

Accepted Answer

A)  an individual. 
B)  a partnership. 
C)  a trust. 
D)  a corporation. 
E)  All of the above can be employers. 
A)  an individual. 
B)  a partnership. 
C)  a trust. 
D)  a corporation. 
E)  All of the above can be employers.

Question 8

Partnerships do not have to pay unemployment taxes on the wages of their employees.

Accepted Answer

A) True 
 B)False

Question 9

Unemployment taxes (FUTA and SUTA)do not have to be paid by an employer who has only part-time employees.

Accepted Answer

A) True 
 B)False

Question 10

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.Faruga Company had FUTA taxable payrolls for the four quarters of
2017 of $28,400;$19,600;$16,500;and $8,900,respectively.The company was located in a state
that was subject to a FUTA credit reduction of 1.5%.What was the amount of Faruga's first required
deposit of FUTA taxes?

Accepted Answer

The answer of Instruction 5-1
Use the net FUTA tax rate...

Question 11

In order to obtain the maximum credit allowed against the federal unemployment tax,the employer must have paid its SUTA contributions by the due date of Form 940.

Accepted Answer

A) True 
 B)False

Question 12

The Social Security Act ordered every state to set up an unemployment compensation program.

Accepted Answer

A) True 
 B)False

Question 13

For FUTA purposes,an employer must pay a higher FUTA tax rate on executives than on nonsupervisory personnel.

Accepted Answer

A) True 
 B)False

Question 14

A traveling salesperson who solicits and transmits to the principal orders for merchandise for resale is considered an employee under FUTA.

Accepted Answer

A) True 
 B)False

Question 15

For FUTA purposes,the cash value of remuneration paid in any medium other than cash is not considered taxable wages.

Accepted Answer

A) True 
 B)False

Question 16

An aspect of the interstate reciprocal arrangement concerns:

Accepted Answer

A)  the status of Americans working overseas. 
B)  the taxability of dismissal payments. 
C)  the determination of an employer's experience rating. 
D)  the transfer of an employee from one state to another during the year. 
E)  none of the above. 
A)  the status of Americans working overseas. 
B)  the taxability of dismissal payments. 
C)  the determination of an employer's experience rating. 
D)  the transfer of an employee from one state to another during the year. 
E)  none of the above.

Question 17

On Form 940,even if the total FUTA tax is more than $500,there is no listing of quarterly federal unemployment tax liabilities.

Accepted Answer

A) True 
 B)False

Question 18

The mailing of Form 940 is considered timely if it is postmarked on or before the due date.

Accepted Answer

A) True 
 B)False

Question 19

In most states,the contribution reports and the wage information reports are filed quarterly.

Accepted Answer

A) True 
 B)False

Question 20

Currently,none of the states imposes an unemployment tax on employees.

Accepted Answer

A) True 
 B)False

In the case of a part-time employee,the employer is not liable to pay any of the employee's earnings.

Insurance agents paid solely on a commission basis are not considered employees under FUTA.

Once a company attains the status of employer for FUTA purposes,that status continues for four calendar years.

If an employer is subject to a credit reduction because of Title XII advances,the penalty for the entire year will be paid only with the deposit for the last quarter of the year.

The person who is not an authorized signer of Form 940 is:

For FUTA purposes,an employer can be any one of the following except:

Partnerships do not have to pay unemployment taxes on the wages of their employees.

Unemployment taxes (FUTA and SUTA)do not have to be paid by an employer who has only part-time employees.

In order to obtain the maximum credit allowed against the federal unemployment tax,the employer must have paid its SUTA contributions by the due date of Form 940.

The Social Security Act ordered every state to set up an unemployment compensation program.

For FUTA purposes,an employer must pay a higher FUTA tax rate on executives than on nonsupervisory personnel.

A traveling salesperson who solicits and transmits to the principal orders for merchandise for resale is considered an employee under FUTA.

For FUTA purposes,the cash value of remuneration paid in any medium other than cash is not considered taxable wages.

An aspect of the interstate reciprocal arrangement concerns:

On Form 940,even if the total FUTA tax is more than $500,there is no listing of quarterly federal unemployment tax liabilities.

The mailing of Form 940 is considered timely if it is postmarked on or before the due date.

In most states,the contribution reports and the wage information reports are filed quarterly.

Currently,none of the states imposes an unemployment tax on employees.

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 the case of a part-time employee,the employer is not liable to pay any of the employee's earnings.

Insurance agents paid solely on a commission basis are not considered employees under FUTA.

Once a company attains the status of employer for FUTA purposes,that status continues for four calendar years.

If an employer is subject to a credit reduction because of Title XII advances,the penalty for the entire year will be paid only with the deposit for the last quarter of the year.

The person who is not an authorized signer of Form 940 is:

For FUTA purposes,an employer can be any one of the following except:

Partnerships do not have to pay unemployment taxes on the wages of their employees.

Unemployment taxes (FUTA and SUTA)do not have to be paid by an employer who has only part-time employees.

In order to obtain the maximum credit allowed against the federal unemployment tax,the employer must have paid its SUTA contributions by the due date of Form 940.

The Social Security Act ordered every state to set up an unemployment compensation program.

For FUTA purposes,an employer must pay a higher FUTA tax rate on executives than on nonsupervisory personnel.

A traveling salesperson who solicits and transmits to the principal orders for merchandise for resale is considered an employee under FUTA.

For FUTA purposes,the cash value of remuneration paid in any medium other than cash is not considered taxable wages.

An aspect of the interstate reciprocal arrangement concerns:

On Form 940,even if the total FUTA tax is more than $500,there is no listing of quarterly federal unemployment tax liabilities.

The mailing of Form 940 is considered timely if it is postmarked on or before the due date.

In most states,the contribution reports and the wage information reports are filed quarterly.

Currently,none of the states imposes an unemployment tax on employees.

The Need for Payroll and Personal Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Analyzing and Journalizing Payroll

Filters