Question 1

All taxable noncash fringe benefits received during the year can only be added to the employees' taxable pay on the last payday of the year.

Accepted Answer

A) True 
 B)False

Question 2

The IRA format of the SIMPLE plan allows employees to make tax-free contributions of up to $12,500

Accepted Answer

A) True 
 B)False

Question 3

A company must withhold federal income taxes from payments made to independent contractors in which of the following cases?

Accepted Answer

A)  When there is a signed contract between the parties. 
B)  When the contractor is paid $400. 
C)  When the contractor is a corporation. 
D)  When the contractor has not provided a taxpayer identification number and the contract is $600 or more. 
E)  All of the above. 
A)  When there is a signed contract between the parties. 
B)  When the contractor is paid $400. 
C)  When the contractor is a corporation. 
D)  When the contractor has not provided a taxpayer identification number and the contract is $600 or more. 
E)  All of the above.

Question 4

Before any federal income taxes may be withheld,there must be,or must have been,an employer-employee relationship.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following forms is used to report rents paid over $600 to landlords?

Accepted Answer

A)  Form 1099-R 
B)  Form 1099-INT 
C)  Form 1099-MISC 
D)  Form 1099-G 
E)  Form 8027 
A)  Form 1099-R 
B)  Form 1099-INT 
C)  Form 1099-MISC 
D)  Form 1099-G 
E)  Form 8027

Question 6

There is no limit to the amount that an employer can contribute in an employee's SIMPLE retirement account.

Accepted Answer

A) True 
 B)False

Question 7

Persons eligible for deductible IRA contributions may put aside a specified amount of their compensation without paying federal income taxes on that amount.

Accepted Answer

A) True 
 B)False

Question 8

Noncash fringe benefits that are provided employees are treated as nontaxable income and thus are excluded from federal income tax withholding.

Accepted Answer

A) True 
 B)False

Question 9

There is no limit to the amount of educational assistance that is exempt from federal income tax withholdings.

Accepted Answer

A) True 
 B)False

Question 10

Exhibit 4-1:
Use the following tables to calculate your answers.      
-Refer to Exhibit 4-1.Determine the income tax to withhold from the biweekly wages of the following employees (wage-bracket): Karen Overton (single, 0 allowances), $\$ 900$ wages __________
Nancy Haller (married, 4 allowances), $\$ 1,000$ wages____________
Alan Glasgow (married, 1 allowance), $\$ 980$ wages___________
Joseph Kerr (single, 4 allowances), $\$ 720$ wages_____________
Ginni Lorenz (single, 1 allowance), $\$ 580$ wages_____________

Accepted Answer

$105.00
$

Question 11

If married employees do not claim their marital status on Form W-4,the employer must withhold according to the withholding tables for single employees.

Accepted Answer

A) True 
 B)False

Question 12

When you pay supplemental wages at the same time as regular wages,the method of calculating the withholding is the same for vacation payments as for semiannual bonuses.

Accepted Answer

A) True 
 B)False

Question 13

Exhibit 4-1:
Use the following tables to calculate your answers.      
-Refer to Exhibit 4-1.Calculate the amount to withhold from the following employees using the biweekly table of the percentage method. Kenneth Karcher (single, 1 allowance $= \$ 155.80$ ), $\$ 895$ wages ____________
Mary Kenny (married, 2 allowances $= \$ 311.60$ ), $\$ 1,900$ wages____________
Thomas Carney (single, 0 allowances), $\$ 1,460$ wages______________

Accepted Answer

$ 79.73^a $1

Question 14

A person holding two jobs may have additional income tax withheld by increasing the number of withholding allowances claimed.

Accepted Answer

A) True 
 B)False

Question 15

By completing Form W-4P,a person can elect to have no income tax withheld from the annuity amounts the person receives.

Accepted Answer

A) True 
 B)False

Question 16

After completion of Form W-4,an employer must copy the employee's social security card and place it in the employee's employment file.

Accepted Answer

A) True 
 B)False

Question 17

Exhibit 4-1:
Use the following tables to calculate your answers.      
-Refer to Exhibit 4-1.Mary Matthews made $950 during a biweekly pay period only social security (fully taxable)and federal income taxes attach to her pay.Matthews contributes $100 each biweekly pay to her company's 401k.Determine Matthews take home pay if she is married and claims 2 allowances.(Use Wage Bracket Method)________________

Accepted Answer

Gross pay $950
- 401(k) $100
-

Question 18

Gere became the father of triplets on May 21.He must file an amended Form W-4 on or before May 31.

Accepted Answer

A) True 
 B)False

Question 19

For which of the following payments is the employer required to withhold federal income taxes?

Accepted Answer

A)  Advances made to sales personnel for traveling expenses 
B)  Tipped employee's monthly tips of $120 
C)  Deceased person's wages paid to the estate 
D)  Minister of Presbyterian church 
E)  All of the above 
A)  Advances made to sales personnel for traveling expenses 
B)  Tipped employee's monthly tips of $120 
C)  Deceased person's wages paid to the estate 
D)  Minister of Presbyterian church 
E)  All of the above

Question 20

The special withholding allowance may be claimed only by those employees who do not itemize deductions on their income tax returns.

Accepted Answer

A) True 
 B)False

All taxable noncash fringe benefits received during the year can only be added to the employees' taxable pay on the last payday of the year.

The IRA format of the SIMPLE plan allows employees to make tax-free contributions of up to $12,500

A company must withhold federal income taxes from payments made to independent contractors in which of the following cases?

Before any federal income taxes may be withheld,there must be,or must have been,an employer-employee relationship.

Which of the following forms is used to report rents paid over $600 to landlords?

There is no limit to the amount that an employer can contribute in an employee's SIMPLE retirement account.

Persons eligible for deductible IRA contributions may put aside a specified amount of their compensation without paying federal income taxes on that amount.

Noncash fringe benefits that are provided employees are treated as nontaxable income and thus are excluded from federal income tax withholding.

There is no limit to the amount of educational assistance that is exempt from federal income tax withholdings.

If married employees do not claim their marital status on Form W-4,the employer must withhold according to the withholding tables for single employees.

When you pay supplemental wages at the same time as regular wages,the method of calculating the withholding is the same for vacation payments as for semiannual bonuses.

A person holding two jobs may have additional income tax withheld by increasing the number of withholding allowances claimed.

By completing Form W-4P,a person can elect to have no income tax withheld from the annuity amounts the person receives.

After completion of Form W-4,an employer must copy the employee's social security card and place it in the employee's employment file.

Gere became the father of triplets on May 21.He must file an amended Form W-4 on or before May 31.

For which of the following payments is the employer required to withhold federal income taxes?

The special withholding allowance may be claimed only by those employees who do not itemize deductions on their income tax returns.

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

All taxable noncash fringe benefits received during the year can only be added to the employees' taxable pay on the last payday of the year.

The IRA format of the SIMPLE plan allows employees to make tax-free contributions of up to $12,500

A company must withhold federal income taxes from payments made to independent contractors in which of the following cases?

Before any federal income taxes may be withheld,there must be,or must have been,an employer-employee relationship.

Which of the following forms is used to report rents paid over $600 to landlords?

There is no limit to the amount that an employer can contribute in an employee's SIMPLE retirement account.

Persons eligible for deductible IRA contributions may put aside a specified amount of their compensation without paying federal income taxes on that amount.

Noncash fringe benefits that are provided employees are treated as nontaxable income and thus are excluded from federal income tax withholding.

There is no limit to the amount of educational assistance that is exempt from federal income tax withholdings.

If married employees do not claim their marital status on Form W-4,the employer must withhold according to the withholding tables for single employees.

When you pay supplemental wages at the same time as regular wages,the method of calculating the withholding is the same for vacation payments as for semiannual bonuses.

A person holding two jobs may have additional income tax withheld by increasing the number of withholding allowances claimed.

By completing Form W-4P,a person can elect to have no income tax withheld from the annuity amounts the person receives.

After completion of Form W-4,an employer must copy the employee's social security card and place it in the employee's employment file.

Gere became the father of triplets on May 21.He must file an amended Form W-4 on or before May 31.

For which of the following payments is the employer required to withhold federal income taxes?

The special withholding allowance may be claimed only by those employees who do not itemize deductions on their income tax returns.

The Need for Payroll and Personal Records

Computing Wages and Salaries

Social Security Taxes

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters