Question 1

An employer must file an information return under all of the following conditions except:

Accepted Answer

A)  to report $1,000 of compensation paid to an individual who is not an employee. 
B)  to report the wages totaling $600 paid to an independent contractor during the calendar year. 
C)  to report dividends totaling $600 paid to an individual during the calendar year. 
D)  to report commissions of $500 paid to a self-employed salesman. 
E)  An information return must be filed under each of the above conditions. 
A)  to report $1,000 of compensation paid to an individual who is not an employee. 
B)  to report the wages totaling $600 paid to an independent contractor during the calendar year. 
C)  to report dividends totaling $600 paid to an individual during the calendar year. 
D)  to report commissions of $500 paid to a self-employed salesman. 
E)  An information return must be filed under each of the above conditions. D

Question 2

On August 1,Hunt filed an amended Form W-4 to show a decrease in the number of allowances claimed.Hunt's employer must put the new withholding allowance certificate into effect before the next weekly payday on August 3.

Accepted Answer

A) True 
 B)False  False

Question 3

A waiter receives cash tips amounting to $120 in a month.The waiter must report the amount of the cash tips to the employer by the 10th of the month following the month they receive the tips.

Accepted Answer

A) True 
 B)False  True

Question 4

The amount of federal income taxes to be withheld is determined after subtracting from the employee's gross wages any local and state taxes.

Accepted Answer

A) True 
 B)False

Question 5

Employees must be given Form W-2 on or before January 31 following the close of the calendar year.

Accepted Answer

A) True 
 B)False

Question 6

Evers,who works for two employers,is entitled to three personal allowances.Evers must claim the three allowances with each of the two employers during the entire calendar year.

Accepted Answer

A) True 
 B)False

Question 7

A personal allowance:

Accepted Answer

A)  amounted to $2,000 in 2018. 
B)  may be claimed to exempt a portion of the employee's earnings from withholding. 
C)  is indexed for inflation every calendar quarter. 
D)  may be claimed at the same time with each employer for whom an employee is working during the year. 
E)  for one person is a different amount for a single versus a married taxpayer. 
A)  amounted to $2,000 in 2018. 
B)  may be claimed to exempt a portion of the employee's earnings from withholding. 
C)  is indexed for inflation every calendar quarter. 
D)  may be claimed at the same time with each employer for whom an employee is working during the year. 
E)  for one person is a different amount for a single versus a married taxpayer.

Question 8

Cash tips of $20 or more received by a tipped employee in a calendar month are treated as remuneration subject to federal income tax withholding.

Accepted Answer

A) True 
 B)False

Question 9

An employee submits an invalid Form W-4 to the employer and does not replace it with a valid form.The employer should withhold federal income taxes at the rate for a single person claiming no exemptions.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following cannot be included in a cafeteria plan?

Accepted Answer

A)  Health insurance 
B)  Group-term life insurance (first $50,000 of coverage) 
C)  Dependent care assistance (first $5,000) 
D)  Self-insured medical reimbursement plan 
E)  Educational assistance 
A)  Health insurance 
B)  Group-term life insurance (first $50,000 of coverage) 
C)  Dependent care assistance (first $5,000) 
D)  Self-insured medical reimbursement plan 
E)  Educational assistance

Question 11

All of the following are properly defined as wages subject to the withholding of federal income taxes except:

Accepted Answer

A)  a year-end bonus. 
B)  kitchen appliances given by manufacturer in lieu of cash wages. 
C)  dismissal payment. 
D)  vacation pay. 
E)  payments made under worker's compensation law. 
A)  a year-end bonus. 
B)  kitchen appliances given by manufacturer in lieu of cash wages. 
C)  dismissal payment. 
D)  vacation pay. 
E)  payments made under worker's compensation law.

Question 12

Beech refuses to state her marital status on Form W-4 which she gave to you,the payroll manager,when she was hired.You should:

Accepted Answer

A)  tell Beech that it is OK since you know that she was recently divorced and is reluctant to talk about it. 
B)  inform Beech that she will have to write the IRS and give her reasons for refusing to state her marital status. 
C)  tell Beech that you will have to withhold income taxes as if she were married and had claimed one allowance. 
D)  tell Beech that you will have to withhold income taxes according to the withholding table for a single employee with no allowances. 
E)  advise Beech to write "It is no business of yours." in the margin of her Form W-4. 
A)  tell Beech that it is OK since you know that she was recently divorced and is reluctant to talk about it. 
B)  inform Beech that she will have to write the IRS and give her reasons for refusing to state her marital status. 
C)  tell Beech that you will have to withhold income taxes as if she were married and had claimed one allowance. 
D)  tell Beech that you will have to withhold income taxes according to the withholding table for a single employee with no allowances. 
E)  advise Beech to write "It is no business of yours." in the margin of her Form W-4.

Question 13

If you,an employer,are filing 550 Forms W-2,you must use electronic filing rather than paper Forms W-2.

Accepted Answer

A) True 
 B)False

Question 14

Form W-3 is filed with the Social Security Administration when transmitting information returns on Forms W-2.

Accepted Answer

A) True 
 B)False

Question 15

In calculating a "gross-up" amount of a bonus payment,an employer does not use the OASDI/HI tax rates in the formula.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following noncash fringe benefits does not represent taxable income subject to federal income tax withholding?

Accepted Answer

A)  Flight on employer-provided airline 
B)  Personal use of company car 
C)  Sick pay 
D)  Employer-paid membership to a country club 
E)  All of the above are taxable. 
A)  Flight on employer-provided airline 
B)  Personal use of company car 
C)  Sick pay 
D)  Employer-paid membership to a country club 
E)  All of the above are taxable.

Question 17

Exhibit 4-1:
Use the following tables to calculate your answers.      
-Refer to Exhibit 4-1.Edward Dorsey is a part-time employee,and during the biweekly pay period he earned $395.In addition,he is being paid a bonus of $300 along with his regular pay.If Dorsey is single and claims two withholding allowances,how much would be deducted from his pay for FIT? (There are two ways to determine his deduction-do not use table for percentage method. )
​
​

Accepted Answer

a) @#LAT-DLM& in wage-bracket

Question 18

Exhibit 4-1:
Use the following tables to calculate your answers.      
-Refer to Exhibit 4-1.Use the appropriate table to determine the amount to withhold for federal income tax from each of the following biweekly wages (biweekly withholding allowance = $155.80): Patrick Patrone (single, 2 all owances), $\$ 925$ wages__________
Carson Leno (married, 4 allowances), $\$ 1,195$ wages______________
Carli Lintz (single, 0 allowances), $\$ 700$ wages______________
Gene Hartz (single, 1 allowance), $\$ 2,500$ wages____________
Mollie Parmer (married, 2 allowances), $\$ 3,600$ wages___________

Accepted Answer

$ 62.00a
$ 23.00a
$

Question 19

Of the two main methods of withholding,only the wage-bracket method distinguishes unmarried persons from married persons.

Accepted Answer

A) True 
 B)False

Question 20

Exhibit 4-1:
Use the following tables to calculate your answers.      
-Refer to Exhibit 4-1.Carson Smart is paid $1,200 every two weeks plus a taxable lodging allowance of $100.He is a participant in the company 401(k)plan and has $150 deducted from his pay for his contribution to the plan.He is married with two allowances.How much would be deducted from his pay for federal income tax (using the wage-bracket table)?

Accepted Answer

($1,200 + $100 - $15

An employer must file an information return under all of the following conditions except:

On August 1,Hunt filed an amended Form W-4 to show a decrease in the number of allowances claimed.Hunt's employer must put the new withholding allowance certificate into effect before the next weekly payday on August 3.

A waiter receives cash tips amounting to $120 in a month.The waiter must report the amount of the cash tips to the employer by the 10th of the month following the month they receive the tips.

The amount of federal income taxes to be withheld is determined after subtracting from the employee's gross wages any local and state taxes.

Employees must be given Form W-2 on or before January 31 following the close of the calendar year.

Evers,who works for two employers,is entitled to three personal allowances.Evers must claim the three allowances with each of the two employers during the entire calendar year.

A personal allowance:

Cash tips of $20 or more received by a tipped employee in a calendar month are treated as remuneration subject to federal income tax withholding.

An employee submits an invalid Form W-4 to the employer and does not replace it with a valid form.The employer should withhold federal income taxes at the rate for a single person claiming no exemptions.

Which of the following cannot be included in a cafeteria plan?

All of the following are properly defined as wages subject to the withholding of federal income taxes except:

Beech refuses to state her marital status on Form W-4 which she gave to you,the payroll manager,when she was hired.You should:

If you,an employer,are filing 550 Forms W-2,you must use electronic filing rather than paper Forms W-2.

Form W-3 is filed with the Social Security Administration when transmitting information returns on Forms W-2.

In calculating a "gross-up" amount of a bonus payment,an employer does not use the OASDI/HI tax rates in the formula.

Which of the following noncash fringe benefits does not represent taxable income subject to federal income tax withholding?

Of the two main methods of withholding,only the wage-bracket method distinguishes unmarried persons from married persons.

The Need for Payroll and Personal Records

Computing Wages and Salaries

Social Security Taxes

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters

Exam 4: Income Tax Withholding

An employer must file an information return under all of the following conditions except:

On August 1,Hunt filed an amended Form W-4 to show a decrease in the number of allowances claimed.Hunt's employer must put the new withholding allowance certificate into effect before the next weekly payday on August 3.

A waiter receives cash tips amounting to $120 in a month.The waiter must report the amount of the cash tips to the employer by the 10th of the month following the month they receive the tips.

The amount of federal income taxes to be withheld is determined after subtracting from the employee's gross wages any local and state taxes.

Employees must be given Form W-2 on or before January 31 following the close of the calendar year.

Evers,who works for two employers,is entitled to three personal allowances.Evers must claim the three allowances with each of the two employers during the entire calendar year.

A personal allowance:

Cash tips of $20 or more received by a tipped employee in a calendar month are treated as remuneration subject to federal income tax withholding.

An employee submits an invalid Form W-4 to the employer and does not replace it with a valid form.The employer should withhold federal income taxes at the rate for a single person claiming no exemptions.

Which of the following cannot be included in a cafeteria plan?

All of the following are properly defined as wages subject to the withholding of federal income taxes except:

Beech refuses to state her marital status on Form W-4 which she gave to you,the payroll manager,when she was hired.You should:

If you,an employer,are filing 550 Forms W-2,you must use electronic filing rather than paper Forms W-2.

Form W-3 is filed with the Social Security Administration when transmitting information returns on Forms W-2.

In calculating a "gross-up" amount of a bonus payment,an employer does not use the OASDI/HI tax rates in the formula.

Which of the following noncash fringe benefits does not represent taxable income subject to federal income tax withholding?

Of the two main methods of withholding,only the wage-bracket method distinguishes unmarried persons from married persons.

The Need for Payroll and Personal Records

Computing Wages and Salaries

Social Security Taxes

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters