Question 1

The standard deduction varies according to whether the wage-bracket method or the percentage method is used.

Accepted Answer

A) True 
 B)False

Question 2

Since not-for-profit corporations are exempt from federal income taxes,they are not defined as employers under the federal income tax withholding law.

Accepted Answer

A) True 
 B)False

Question 3

The withholding of federal income and FICA taxes from a tipped employee is made from the employee's wages that are under the employer's control.

Accepted Answer

A) True 
 B)False

Question 4

To curb the practice of employees filing false Forms W-4,the IRS requires that an employer submit to the agency a copy of each Form W-4:

Accepted Answer

A)  the IRS has requested in writing. 
B)  on which an employee,usually earning $180 each week at the time Form W-4 was filed,now claims to be exempt from withholding. 
C)  on which an employee claims to be single but has 9 withholding allowances. 
D)  on which a married employee claims no withholding allowances. 
E)  on which a recently divorced employee claims 5 withholding allowances and authorizes an additional $10 to be withheld each week. 
A)  the IRS has requested in writing. 
B)  on which an employee,usually earning $180 each week at the time Form W-4 was filed,now claims to be exempt from withholding. 
C)  on which an employee claims to be single but has 9 withholding allowances. 
D)  on which a married employee claims no withholding allowances. 
E)  on which a recently divorced employee claims 5 withholding allowances and authorizes an additional $10 to be withheld each week.

Question 5

Which of the following forms is used to report the amount of distributions from pension and retirement plans?

Accepted Answer

A)  Form W-2c 
B)  Form 1099-R 
C)  Form 1099-PEN 
D)  Form W-3p 
E)  Form W-4 
A)  Form W-2c 
B)  Form 1099-R 
C)  Form 1099-PEN 
D)  Form W-3p 
E)  Form W-4

Question 6

The payments to a cook employed by a college fraternity are excluded from federal income tax withholding.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips?

Accepted Answer

A)  Tips amounting to $10 or more in a calendar month must be reported by tipped employees to their employers. 
B)  The withholding of federal income taxes on employees' reported tip income is made from the amount of tips reported by employees. 
C)  When employees report taxable tips in connection with employment in which they also receive regular wages,the amount of tax to be withheld on the tips is computed as if the tips were a supplemental wage payment. 
D)  Employers do not withhold FICA taxes on the tipped employees' reported tip income. 
E)  None of the above statements is correct. 
A)  Tips amounting to $10 or more in a calendar month must be reported by tipped employees to their employers. 
B)  The withholding of federal income taxes on employees' reported tip income is made from the amount of tips reported by employees. 
C)  When employees report taxable tips in connection with employment in which they also receive regular wages,the amount of tax to be withheld on the tips is computed as if the tips were a supplemental wage payment. 
D)  Employers do not withhold FICA taxes on the tipped employees' reported tip income. 
E)  None of the above statements is correct.

Question 8

In the IRA form of the Simple Retirement Account,employers must match the employee's contribution,dollar-for-dollar,up to 3% of the employee's compensation.

Accepted Answer

A) True 
 B)False

Question 9

An employer is required to submit a copy of the employee's Form W-4 to the IRS if the employee has claimed 15 or more withholding allowances.

Accepted Answer

A) True 
 B)False

Question 10

An employer must withhold federal income taxes on both the tips reported by tipped employees and the tips that the employer allocates to the employees.

Accepted Answer

A) True 
 B)False

Question 11

In the case of a 401(k)plan,employees age 50 or over can shelter an extra $10,000 of their wages from federal income tax.

Accepted Answer

A) True 
 B)False

Question 12

For state income tax purposes,all states treat 401(k)plan payroll deductions as nontaxable.

Accepted Answer

A) True 
 B)False

Question 13

Under the federal income tax withholding law,income taxes are not withheld from the value of meals that employers furnish workers on the employers' premises for the employers' convenience.

Accepted Answer

A) True 
 B)False

Question 14

Under the federal income tax withholding law,which of the following is not defined as an employee?

Accepted Answer

A)  Partner who draws compensation for services rendered the partnership 
B)  General manager,age 66 
C)  Payroll clerk hired one week ago 
D)  Governor of the state of Florida 
E)  Secretary employed by a not-for-profit corporation 
A)  Partner who draws compensation for services rendered the partnership 
B)  General manager,age 66 
C)  Payroll clerk hired one week ago 
D)  Governor of the state of Florida 
E)  Secretary employed by a not-for-profit corporation

Question 15

Under the federal income tax withholding law,a definition of employee excludes partners.

Accepted Answer

A) True 
 B)False

Question 16

Arch gives you an amended Form W-4 dated March 9,2018 on which he claims two additional withholding allowances.He asks you to refund the excess taxes that were deducted from January 1 to March 9 when Arch claimed only one withholding allowance.You should:

Accepted Answer

A)  repay the overwithheld taxes on Arch's next payday. 
B)  tell Arch that you will spread out a refund of the overwithheld taxes equally over the next six pays. 
C)  inform Arch that you are unable to repay the overwithheld taxes that were withheld before
March 9 and that the adjustment will have to be made when he files his annual income tax return. 
D)  tell Arch to write the IRS immediately and ask for a refund of the overwithheld taxes. 
E)  inform Arch that you will appoint a committee to study his request. 
A)  repay the overwithheld taxes on Arch's next payday. 
B)  tell Arch that you will spread out a refund of the overwithheld taxes equally over the next six pays. 
C)  inform Arch that you are unable to repay the overwithheld taxes that were withheld before
March 9 and that the adjustment will have to be made when he files his annual income tax return. 
D)  tell Arch to write the IRS immediately and ask for a refund of the overwithheld taxes. 
E)  inform Arch that you will appoint a committee to study his request.

The standard deduction varies according to whether the wage-bracket method or the percentage method is used.

Since not-for-profit corporations are exempt from federal income taxes,they are not defined as employers under the federal income tax withholding law.

The withholding of federal income and FICA taxes from a tipped employee is made from the employee's wages that are under the employer's control.

To curb the practice of employees filing false Forms W-4,the IRS requires that an employer submit to the agency a copy of each Form W-4:

Which of the following forms is used to report the amount of distributions from pension and retirement plans?

The payments to a cook employed by a college fraternity are excluded from federal income tax withholding.

Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips?

In the IRA form of the Simple Retirement Account,employers must match the employee's contribution,dollar-for-dollar,up to 3% of the employee's compensation.

An employer is required to submit a copy of the employee's Form W-4 to the IRS if the employee has claimed 15 or more withholding allowances.

An employer must withhold federal income taxes on both the tips reported by tipped employees and the tips that the employer allocates to the employees.

In the case of a 401(k)plan,employees age 50 or over can shelter an extra $10,000 of their wages from federal income tax.

For state income tax purposes,all states treat 401(k)plan payroll deductions as nontaxable.

Under the federal income tax withholding law,income taxes are not withheld from the value of meals that employers furnish workers on the employers' premises for the employers' convenience.

Under the federal income tax withholding law,which of the following is not defined as an employee?

Under the federal income tax withholding law,a definition of employee excludes partners.

Arch gives you an amended Form W-4 dated March 9,2018 on which he claims two additional withholding allowances.He asks you to refund the excess taxes that were deducted from January 1 to March 9 when Arch claimed only one withholding allowance.You should:

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

The standard deduction varies according to whether the wage-bracket method or the percentage method is used.

Since not-for-profit corporations are exempt from federal income taxes,they are not defined as employers under the federal income tax withholding law.

The withholding of federal income and FICA taxes from a tipped employee is made from the employee's wages that are under the employer's control.

To curb the practice of employees filing false Forms W-4,the IRS requires that an employer submit to the agency a copy of each Form W-4:

Which of the following forms is used to report the amount of distributions from pension and retirement plans?

The payments to a cook employed by a college fraternity are excluded from federal income tax withholding.

Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips?

In the IRA form of the Simple Retirement Account,employers must match the employee's contribution,dollar-for-dollar,up to 3% of the employee's compensation.

An employer is required to submit a copy of the employee's Form W-4 to the IRS if the employee has claimed 15 or more withholding allowances.

An employer must withhold federal income taxes on both the tips reported by tipped employees and the tips that the employer allocates to the employees.

In the case of a 401(k)plan,employees age 50 or over can shelter an extra $10,000 of their wages from federal income tax.

For state income tax purposes,all states treat 401(k)plan payroll deductions as nontaxable.

Under the federal income tax withholding law,income taxes are not withheld from the value of meals that employers furnish workers on the employers' premises for the employers' convenience.

Under the federal income tax withholding law,which of the following is not defined as an employee?

Under the federal income tax withholding law,a definition of employee excludes partners.

Arch gives you an amended Form W-4 dated March 9,2018 on which he claims two additional withholding allowances.He asks you to refund the excess taxes that were deducted from January 1 to March 9 when Arch claimed only one withholding allowance.You should:

The Need for Payroll and Personal Records

Computing Wages and Salaries

Social Security Taxes

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters