Question 1

Which of the following statements regarding the lookback period for 2016 is correct?

Accepted Answer

A) The lookback period consists of the four quarters starting January 1,2015 through December 31,2015. 
B) The lookback period consists of the four quarters starting October 1,2014 through September 30,2015. 
C) The lookback period consists of the four quarters starting July 1,2014 through June 30,2015. 
D) The lookback period consists of the four quarters starting April 1,2014 through March 31,2015. 
A) The lookback period consists of the four quarters starting January 1,2015 through December 31,2015. 
B) The lookback period consists of the four quarters starting October 1,2014 through September 30,2015. 
C) The lookback period consists of the four quarters starting July 1,2014 through June 30,2015. 
D) The lookback period consists of the four quarters starting April 1,2014 through March 31,2015.

Question 2

What is the maximum state unemployment credit allowed for FUTA purposes?

Accepted Answer

A) 90% of the maximum rate allowed for state unemployment. 
B) 6)0% if all state unemployment taxes have been paid. 
C) 5)4% if all state unemployment taxes have been paid. 
D) None. 
A) 90% of the maximum rate allowed for state unemployment. 
B) 6)0% if all state unemployment taxes have been paid. 
C) 5)4% if all state unemployment taxes have been paid. 
D) None.

Question 3

Sharon is single and is paid $3,892 biweekly and claims one withholding allowance.What amount of federal income tax will be withheld from Sharon's gross wages for each payroll period? Round your answer to 2 decimal places.)

Accepted Answer

A) $773.30. 
B) $750.39. 
C) $754.03. 
D) $797.65. 
A) $773.30. 
B) $750.39. 
C) $754.03. 
D) $797.65.

Question 4

Taxpayers who employ household workers must file a quarterly 941 return and an annual 940 return.

Accepted Answer

A) True 
 B)False

Question 5

A payer must request from any U.S.person or resident alien)that he or she complete Form W-9 to certify that all the following are true except:

Accepted Answer

A) The taxpayer is subject to backup withholding. 
B) The taxpayer is not subject to backup withholding. 
C) The taxpayer is exempt from backup withholding if a U.S.exempt payee. 
D) The taxpayer identification number is correct. 
A) The taxpayer is subject to backup withholding. 
B) The taxpayer is not subject to backup withholding. 
C) The taxpayer is exempt from backup withholding if a U.S.exempt payee. 
D) The taxpayer identification number is correct.

Question 6

Household workers are subject to FUTA tax only if cash wages of $2,000 or more are paid in any calendar quarter during the prior and/or current year.

Accepted Answer

A) True 
 B)False

Question 7

Ben has 2 jobs and both employers withhold FICA taxes.From his first job,Ben earned $85,034 and from his second job,he earned $34,496.How much can Ben claim as additional payment on his Form 1040 as excess social security tax paid in 2016?

Accepted Answer

A) $94.86. 
B) $32.86. 
C) $0. 
D) $63.86. 
A) $94.86. 
B) $32.86. 
C) $0. 
D) $63.86.

Question 8

When calculating self-employment taxes from a taxpayer who also receives wages from a salaried job,the earnings from self-employment are considered first in calculating the ceiling amount for social security and Medicare.

Accepted Answer

A) True 
 B)False

Question 9

Maeda Company has the following employees on the payroll:
   Using the information above:
a.Calculate the FUTA tax liability for 2016.Assume that Maeda Company has paid all amounts due during the year.
b.If the payroll is consistent from quarter to quarter,how much would be remitted in FUTA taxes in each of the four quarters in 2016?

Accepted Answer

a.$7,000 × .6% = $42

Question 10

Employers withhold income tax only on tips claimed by employees who are tipped.

Accepted Answer

A) True 
 B)False

Question 11

Kathy received a commission of $12,000 from her employer and she also earns semimonthly wages of $2,500.Which of the following federal withholding methods is incorrect?

Accepted Answer

A) If taxes have not already been withheld from Kathy's regular wage,the commission is added to the wages and withheld as if the total were a single payment. 
B) If taxes have already been withheld from Kathy's wages separately,the commission is subject to backup withholding of 25%. 
C) If taxes have already been withheld from Kathy's wages separately,the commission is added to the wages and federal taxes are withheld as if the total were a single payment.Subtract the tax already withheld and withhold the remaining tax from the supplemental wages. 
D) If taxes have already been withheld from Kathy's wages,the commission is taxed at a flat rate of 28%. 
A) If taxes have not already been withheld from Kathy's regular wage,the commission is added to the wages and withheld as if the total were a single payment. 
B) If taxes have already been withheld from Kathy's wages separately,the commission is subject to backup withholding of 25%. 
C) If taxes have already been withheld from Kathy's wages separately,the commission is added to the wages and federal taxes are withheld as if the total were a single payment.Subtract the tax already withheld and withhold the remaining tax from the supplemental wages. 
D) If taxes have already been withheld from Kathy's wages,the commission is taxed at a flat rate of 28%.

Question 12

Kim works part-time for Medical Assistants Inc.,and earned $6,385 for 2016.What amount of FUTA tax must her employer remit to the IRS? Assume her employer receives the maximum credit for state unemployment taxes.

Accepted Answer

A) $51.08. 
B) $39.58. 
C) $38.31. 
D) $44.70. 
A) $51.08. 
B) $39.58. 
C) $38.31. 
D) $44.70.

Question 13

Form 1040-ES is filed along with the Form 1040 when a taxpayer makes estimated payments during the year.

Accepted Answer

A) True 
 B)False

Question 14

Nikki's salary is $209,950 in 2016.She is paid on a biweekly basis,is single and claims zero allowances.Round your answer to 2 decimal places.)
a.What is Nikki's federal tax withholding per pay period?
b.What is Nikki's FICA withholding per pay period before she reaches the social security limit?

Accepted Answer

a.$2,002.6

Question 15

The penalty per return for intentional disregard of filing requirements is:

Accepted Answer

A) $50 per return. 
B) $260 per return. 
C) $530 per return. 
D) $100 per return. 
A) $50 per return. 
B) $260 per return. 
C) $530 per return. 
D) $100 per return.

Question 16

When using the wage bracket method,withholding allowances are deducted before figuring the federal withholding amount.

Accepted Answer

A) True 
 B)False

Question 17

Employers with a payroll tax liability of less than $2,500 at the end of a quarter can pay the payroll tax liability at the end of the next month following the quarter with Form 941.

Accepted Answer

A) True 
 B)False

Question 18

Employees typically receive a paycheck on a weekly,biweekly,semimonthly or monthly basis.

Accepted Answer

A) True 
 B)False

Question 19

A taxpayer with an AGI of $300,000 for 2016 pays estimated taxes.The taxpayer can avoid an underpayment penalty by paying:

Accepted Answer

A) At least 110% of his/her 2016 tax liability ratably over four quarterly payments. 
B) At least 100% of his/her 2016 tax liability ratably over four quarterly payments. 
C) At least 90% of his/her 2015-2016 tax liability if his/her 2015 adjusted gross income was less than $200,000 regardless of filing status. 
D) At least 90% of his/her 2016 tax liability ratably over four quarterly payments. 
A) At least 110% of his/her 2016 tax liability ratably over four quarterly payments. 
B) At least 100% of his/her 2016 tax liability ratably over four quarterly payments. 
C) At least 90% of his/her 2015-2016 tax liability if his/her 2015 adjusted gross income was less than $200,000 regardless of filing status. 
D) At least 90% of his/her 2016 tax liability ratably over four quarterly payments.

Question 20

Jack is married,is paid $5,153 biweekly,and claims three allowances.What amount of federal income tax is withheld from his gross wages each pay period?

Accepted Answer

A) $686.90. 
B) $763.90. 
C) $880.75. 
D) $736.90. 
A) $686.90. 
B) $763.90. 
C) $880.75. 
D) $736.90.

Which of the following statements regarding the lookback period for 2016 is correct?

What is the maximum state unemployment credit allowed for FUTA purposes?

Sharon is single and is paid $3,892 biweekly and claims one withholding allowance.What amount of federal income tax will be withheld from Sharon's gross wages for each payroll period? Round your answer to 2 decimal places.)

Taxpayers who employ household workers must file a quarterly 941 return and an annual 940 return.

A payer must request from any U.S.person or resident alien)that he or she complete Form W-9 to certify that all the following are true except:

Household workers are subject to FUTA tax only if cash wages of $2,000 or more are paid in any calendar quarter during the prior and/or current year.

Ben has 2 jobs and both employers withhold FICA taxes.From his first job,Ben earned $85,034 and from his second job,he earned $34,496.How much can Ben claim as additional payment on his Form 1040 as excess social security tax paid in 2016?

When calculating self-employment taxes from a taxpayer who also receives wages from a salaried job,the earnings from self-employment are considered first in calculating the ceiling amount for social security and Medicare.

Employers withhold income tax only on tips claimed by employees who are tipped.

Kathy received a commission of $12,000 from her employer and she also earns semimonthly wages of $2,500.Which of the following federal withholding methods is incorrect?

Kim works part-time for Medical Assistants Inc.,and earned $6,385 for 2016.What amount of FUTA tax must her employer remit to the IRS? Assume her employer receives the maximum credit for state unemployment taxes.

Form 1040-ES is filed along with the Form 1040 when a taxpayer makes estimated payments during the year.

Nikki's salary is $209,950 in 2016.She is paid on a biweekly basis,is single and claims zero allowances.Round your answer to 2 decimal places.) a.What is Nikki's federal tax withholding per pay period? b.What is Nikki's FICA withholding per pay period before she reaches the social security limit?

The penalty per return for intentional disregard of filing requirements is:

When using the wage bracket method,withholding allowances are deducted before figuring the federal withholding amount.

Employers with a payroll tax liability of less than $2,500 at the end of a quarter can pay the payroll tax liability at the end of the next month following the quarter with Form 941.

Employees typically receive a paycheck on a weekly,biweekly,semimonthly or monthly basis.

A taxpayer with an AGI of $300,000 for 2016 pays estimated taxes.The taxpayer can avoid an underpayment penalty by paying:

Jack is married,is paid $5,153 biweekly,and claims three allowances.What amount of federal income tax is withheld from his gross wages each pay period?

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters

Exam 10: Payroll Taxes

Which of the following statements regarding the lookback period for 2016 is correct?

What is the maximum state unemployment credit allowed for FUTA purposes?

Sharon is single and is paid $3,892 biweekly and claims one withholding allowance.What amount of federal income tax will be withheld from Sharon's gross wages for each payroll period? Round your answer to 2 decimal places.)

Taxpayers who employ household workers must file a quarterly 941 return and an annual 940 return.

A payer must request from any U.S.person or resident alien)that he or she complete Form W-9 to certify that all the following are true except:

Household workers are subject to FUTA tax only if cash wages of $2,000 or more are paid in any calendar quarter during the prior and/or current year.

Ben has 2 jobs and both employers withhold FICA taxes.From his first job,Ben earned $85,034 and from his second job,he earned $34,496.How much can Ben claim as additional payment on his Form 1040 as excess social security tax paid in 2016?

When calculating self-employment taxes from a taxpayer who also receives wages from a salaried job,the earnings from self-employment are considered first in calculating the ceiling amount for social security and Medicare.

Employers withhold income tax only on tips claimed by employees who are tipped.

Kathy received a commission of $12,000 from her employer and she also earns semimonthly wages of $2,500.Which of the following federal withholding methods is incorrect?

Kim works part-time for Medical Assistants Inc.,and earned $6,385 for 2016.What amount of FUTA tax must her employer remit to the IRS? Assume her employer receives the maximum credit for state unemployment taxes.

Form 1040-ES is filed along with the Form 1040 when a taxpayer makes estimated payments during the year.

Nikki's salary is $209,950 in 2016.She is paid on a biweekly basis,is single and claims zero allowances.Round your answer to 2 decimal places.) a.What is Nikki's federal tax withholding per pay period? b.What is Nikki's FICA withholding per pay period before she reaches the social security limit?

The penalty per return for intentional disregard of filing requirements is:

When using the wage bracket method,withholding allowances are deducted before figuring the federal withholding amount.

Employers with a payroll tax liability of less than $2,500 at the end of a quarter can pay the payroll tax liability at the end of the next month following the quarter with Form 941.

Employees typically receive a paycheck on a weekly,biweekly,semimonthly or monthly basis.

A taxpayer with an AGI of $300,000 for 2016 pays estimated taxes.The taxpayer can avoid an underpayment penalty by paying:

Jack is married,is paid $5,153 biweekly,and claims three allowances.What amount of federal income tax is withheld from his gross wages each pay period?

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters