Question 1

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  False

Question 2

If an employee works in more than one state,the employer must pay a separate SUTA tax to each of those states in which the employee earns wages.

Accepted Answer

A) True 
 B)False  False

Question 3

"Dumping" is legal in all but a few states.

Accepted Answer

A) True 
 B)False  False

Question 4

An employer can use a credit card to pay the quarterly deposit of FUTA taxes during the year.​

Accepted Answer

A) True 
 B)False

Question 5

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 6

Which of the following is not a factor considered in determining coverage of interstate employees?

Accepted Answer

A)  Location of base of operations 
B)  Place where work is localized 
C)  Location of company's payroll department 
D)  Location of employee's residence 
E)  Location of place from which operations are controlled 
A)  Location of base of operations 
B)  Place where work is localized 
C)  Location of company's payroll department 
D)  Location of employee's residence 
E)  Location of place from which operations are controlled

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

FUTA and SUTA coverages extend to U.S.citizens working abroad for American employers.

Accepted Answer

A) True 
 B)False

Question 12

Refer to Instruction 5-1.Michael Mirer worked for Dawson Company for six months this year and earned $11,200.The other six months he earned $6,900 working for McBride Company (a separate company).The amount of FUTA taxes to be paid on Mirer's wages by the two companies is: a) Dawson Company____________
b) McBride Company______________

Accepted Answer

The answer of Refer to Instruction 5-1.Michael Mirer worked for...

Question 13

If the employer has made timely deposits that pay the FUTA tax liability in full,the filing of Form 940 can be delayed until:

Accepted Answer

A)  December 31. 
B)  February 15. 
C)  February 10. 
D)  February 1. 
E)  March 31. 
A)  December 31. 
B)  February 15. 
C)  February 10. 
D)  February 1. 
E)  March 31.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 17

Refer to Instruction 5-1.Faruga Company had FUTA taxable payrolls for the four quarters of
2018 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 Refer to Instruction 5-1.Faruga Company had FUTA...

Question 18

Services performed in the employ of a religious organization that is exempt from federal income tax are also exempt from FUTA coverage.

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

Refer to Instruction 5-1.In the first quarter of the year,Henry Gibson earned $3,000 in wages and reported $2,400 in tips to his employer.How much would the employer's FUTA tax be for the first quarter on Gibson?

Accepted Answer

The answer of Refer to Instruction 5-1.In the first quarter...

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

If an employee works in more than one state,the employer must pay a separate SUTA tax to each of those states in which the employee earns wages.

"Dumping" is legal in all but a few states.

An employer can use a credit card to pay the quarterly deposit of FUTA taxes during the year.

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

Which of the following is not a factor considered in determining coverage of interstate employees?

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

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

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

Included under the definition of employees for FUTA purposes are:

FUTA and SUTA coverages extend to U.S.citizens working abroad for American employers.

If the employer has made timely deposits that pay the FUTA tax liability in full,the filing of Form 940 can be delayed until:

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

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

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

Services performed in the employ of a religious organization that is exempt from federal income tax are also exempt from FUTA coverage.

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

Refer to Instruction 5-1.In the first quarter of the year,Henry Gibson earned $3,000 in wages and reported $2,400 in tips to his employer.How much would the employer's FUTA tax be for the first quarter on Gibson?

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

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

If an employee works in more than one state,the employer must pay a separate SUTA tax to each of those states in which the employee earns wages.

"Dumping" is legal in all but a few states.

An employer can use a credit card to pay the quarterly deposit of FUTA taxes during the year.​

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

Which of the following is not a factor considered in determining coverage of interstate employees?

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

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

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

Included under the definition of employees for FUTA purposes are:

FUTA and SUTA coverages extend to U.S.citizens working abroad for American employers.

If the employer has made timely deposits that pay the FUTA tax liability in full,the filing of Form 940 can be delayed until:

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

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

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

Services performed in the employ of a religious organization that is exempt from federal income tax are also exempt from FUTA coverage.

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

Refer to Instruction 5-1.In the first quarter of the year,Henry Gibson earned $3,000 in wages and reported $2,400 in tips to his employer.How much would the employer's FUTA tax be for the first quarter on Gibson?

The Need for Payroll and Personal Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Analyzing and Journalizing Payroll

Filters

An employer can use a credit card to pay the quarterly deposit of FUTA taxes during the year.

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