Question 1

Bubba earned a total of $221,100 for 2016.How much FICA tax is his employer required to withhold from Bubba's paychecks for the year?

Accepted Answer

A) $10,525.95. 
B) $10,552.95. 
C) $10,742.85. 
D) $10,741.95. 
A) $10,525.95. 
B) $10,552.95. 
C) $10,742.85. 
D) $10,741.95.

Question 2

The maximum penalty imposed on employers for incorrect or late filing of W-2s subject to maximum penalties)is:

Accepted Answer

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

Question 3

Carolyne is married,is paid $1,390 per week,and claims two withholding allowances.What amount of federal income tax is withheld from her gross wages each week using the wage bracket table in Appendix A at the end of the chapter.

Accepted Answer

A) $142.00. 
B) $154.00. 
C) $155.00. 
D) $143.00. 
A) $142.00. 
B) $154.00. 
C) $155.00. 
D) $143.00.

Question 4

New employers are always considered to be monthly schedule depositors regardless of the amount of their federal tax liability during their first year.

Accepted Answer

A) True 
 B)False

Question 5

A taxpayer had AGI of $300,000 in 2016 and AGI of $250,000 in 2015.When filing her 2016 return,she expects her unpaid tax liability to be at least $1,000.She must make estimated payments equal to the smaller of 90% of the tax shown on her 2016 return or

Accepted Answer

A) 100% of the tax on her 2015 return regardless of 2016 AGI. 
B) 110% of the tax on her 2015 return because 2015 AGI was more than $150,000. 
C) 100% of the tax on the 2015 return because 2016 AGI was more than $100,000. 
D) 110% of the tax on the 2015 return because 2015 AGI was greater than 2016 AGI. 
A) 100% of the tax on her 2015 return regardless of 2016 AGI. 
B) 110% of the tax on her 2015 return because 2015 AGI was more than $150,000. 
C) 100% of the tax on the 2015 return because 2016 AGI was more than $100,000. 
D) 110% of the tax on the 2015 return because 2015 AGI was greater than 2016 AGI.

Question 6

Harry has two jobs.He earns $118,700 from his first job and $10,000 from his second job.How much total FICA withholding will Harry have withheld from his wages from working two jobs?

Accepted Answer

A) $9,068.15. 
B) $9,833.15. 
C) $9,213.15. 
D) $9,845.55. 
A) $9,068.15. 
B) $9,833.15. 
C) $9,213.15. 
D) $9,845.55.

Question 7

The Anderson Company started its business on August 3rd.On August 14th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 28,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?

Accepted Answer

A) Semiweekly for this pay period only and then monthly for the remainder of the year. 
B) Monthly because new companies do not have a look back period. 
C) Semiweekly because its accumulated tax liability is $100,000 for the month. 
D) Monthly because its accumulated tax liability is not more than $100,000 on any one day. 
A) Semiweekly for this pay period only and then monthly for the remainder of the year. 
B) Monthly because new companies do not have a look back period. 
C) Semiweekly because its accumulated tax liability is $100,000 for the month. 
D) Monthly because its accumulated tax liability is not more than $100,000 on any one day.

Question 8

Household employees are subject to FICA withholding if they are paid at least what amount during 2016?

Accepted Answer

A) $1,800. 
B) $2,000. 
C) $1,900. 
D) $1,700. 
A) $1,800. 
B) $2,000. 
C) $1,900. 
D) $1,700.

Question 9

Self-employed taxpayers who also receive wages from an employer are not subject to FICA or federal withholding taxes.

Accepted Answer

A) True 
 B)False

Question 10

Form 941 is a quarterly reconciliation report an employer sends to the IRS showing all federal payroll tax liability and payments for the period.

Accepted Answer

A) True 
 B)False

Question 11

Daniel is a computer technical support representative earning $95,000 per year and also has a sole proprietor consulting business where he earned $28,000 for 2016.How much of his total earnings are subject to self-employment tax for 2016?

Accepted Answer

A) $28,000.00. 
B) $17,269.45. 
C) $18,700.00. 
D) $25,858.00. 
A) $28,000.00. 
B) $17,269.45. 
C) $18,700.00. 
D) $25,858.00.

Question 12

Copy A of the Form W-2 is a red scannable form that is sent directly to the Internal Revenue Service to track all wages for federal income tax and social security purposes.

Accepted Answer

A) True 
 B)False

Question 13

If on any day during the month,an employer accumulates $100,000 or more in tax liability,the taxes must be deposited:

Accepted Answer

A) By the next banking day. 
B) By either the following Wednesday or Friday if the employer is a semiweekly schedule depositor. 
C) Before the close of the business day in which the liability occurs. 
D) By the last day of the week if the employer is a monthly depositor. 
A) By the next banking day. 
B) By either the following Wednesday or Friday if the employer is a semiweekly schedule depositor. 
C) Before the close of the business day in which the liability occurs. 
D) By the last day of the week if the employer is a monthly depositor.

Question 14

Employers are not required to withhold any federal taxes on allocated tips.

Accepted Answer

A) True 
 B)False

Question 15

Loretta has two jobs.She earned $120,000 from her first job and $20,000 from her second job.How much total FICA taxes will Loretta have withheld from her wages from working two jobs?

Accepted Answer

A) $10,327.00. 
B) $9,087.00 
C) $10,617.00. 
D) $9,377.00 
A) $10,327.00. 
B) $9,087.00 
C) $10,617.00. 
D) $9,377.00

Question 16

Unless specifically excluded,what is the penalty for sending a required tax payment directly to the Internal Revenue Service?

Accepted Answer

A) 2%. 
B) 5%. 
C) 15%. 
D) 10%. 
A) 2%. 
B) 5%. 
C) 15%. 
D) 10%.

Question 17

Angie earned $124,200 during 2016.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in Medicare taxes for 2016?

Accepted Answer

A) $1,800.90. 
B) $1,718.25. 
C) $1,798.00. 
D) $1,738.80. 
A) $1,800.90. 
B) $1,718.25. 
C) $1,798.00. 
D) $1,738.80.

Question 18

Sandy is a self-employed health information coder.She has net earnings profit)from her business of $71,200.Her self-employment taxes for the year are: Round your answer to 2 decimal places.)

Accepted Answer

A) $10,060.24. 
B) $10,893.60. 
C) $10,066.24. 
D) $10,680.00. 
A) $10,060.24. 
B) $10,893.60. 
C) $10,066.24. 
D) $10,680.00.

Question 19

Alexandra earned $200 in tips in June.When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

Accepted Answer

A) July 10. 
B) June 30. 
C) July 31. 
D) Alexandra is not under any obligation to inform her employer of her tips earned in any one month. 
A) July 10. 
B) June 30. 
C) July 31. 
D) Alexandra is not under any obligation to inform her employer of her tips earned in any one month.

Question 20

Jean received a commission of $7,000 from her employer.How is the federal withholding tax on this payment calculated if she also earns semimonthly wages of $3,500?

Accepted Answer

A) If taxes have already been withheld from Jean's regular wages,the commission is added to the wages and the entire amount is subject to withholding at a rate of 25%. 
B) If taxes have already been withheld from Jean's wages,the commission is taxed at a flat rate of 25%. 
C) If taxes have already been withheld from Jean's wages separately,the commission is added to the wages and federal taxes are withheld on this combined amount.Any excess taxes withheld this pay period will be refunded to Jean on her next paycheck. 
D) If taxes have already been withheld from Jean's wages separately,the commission is subject to backup withholding of 28%. 
A) If taxes have already been withheld from Jean's regular wages,the commission is added to the wages and the entire amount is subject to withholding at a rate of 25%. 
B) If taxes have already been withheld from Jean's wages,the commission is taxed at a flat rate of 25%. 
C) If taxes have already been withheld from Jean's wages separately,the commission is added to the wages and federal taxes are withheld on this combined amount.Any excess taxes withheld this pay period will be refunded to Jean on her next paycheck. 
D) If taxes have already been withheld from Jean's wages separately,the commission is subject to backup withholding of 28%.

Bubba earned a total of $221,100 for 2016.How much FICA tax is his employer required to withhold from Bubba's paychecks for the year?

The maximum penalty imposed on employers for incorrect or late filing of W-2s subject to maximum penalties)is:

Carolyne is married,is paid $1,390 per week,and claims two withholding allowances.What amount of federal income tax is withheld from her gross wages each week using the wage bracket table in Appendix A at the end of the chapter.

New employers are always considered to be monthly schedule depositors regardless of the amount of their federal tax liability during their first year.

A taxpayer had AGI of $300,000 in 2016 and AGI of $250,000 in 2015.When filing her 2016 return,she expects her unpaid tax liability to be at least $1,000.She must make estimated payments equal to the smaller of 90% of the tax shown on her 2016 return or

Harry has two jobs.He earns $118,700 from his first job and $10,000 from his second job.How much total FICA withholding will Harry have withheld from his wages from working two jobs?

The Anderson Company started its business on August 3^rd.On August 14^th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 28,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?

Household employees are subject to FICA withholding if they are paid at least what amount during 2016?

Self-employed taxpayers who also receive wages from an employer are not subject to FICA or federal withholding taxes.

Form 941 is a quarterly reconciliation report an employer sends to the IRS showing all federal payroll tax liability and payments for the period.

Daniel is a computer technical support representative earning $95,000 per year and also has a sole proprietor consulting business where he earned $28,000 for 2016.How much of his total earnings are subject to self-employment tax for 2016?

Copy A of the Form W-2 is a red scannable form that is sent directly to the Internal Revenue Service to track all wages for federal income tax and social security purposes.

If on any day during the month,an employer accumulates $100,000 or more in tax liability,the taxes must be deposited:

Employers are not required to withhold any federal taxes on allocated tips.

Loretta has two jobs.She earned $120,000 from her first job and $20,000 from her second job.How much total FICA taxes will Loretta have withheld from her wages from working two jobs?

Unless specifically excluded,what is the penalty for sending a required tax payment directly to the Internal Revenue Service?

Angie earned $124,200 during 2016.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in Medicare taxes for 2016?

Sandy is a self-employed health information coder.She has net earnings profit)from her business of $71,200.Her self-employment taxes for the year are: Round your answer to 2 decimal places.)

Alexandra earned $200 in tips in June.When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

Jean received a commission of $7,000 from her employer.How is the federal withholding tax on this payment calculated if she also earns semimonthly wages of $3,500?

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

Bubba earned a total of $221,100 for 2016.How much FICA tax is his employer required to withhold from Bubba's paychecks for the year?

The maximum penalty imposed on employers for incorrect or late filing of W-2s subject to maximum penalties)is:

Carolyne is married,is paid $1,390 per week,and claims two withholding allowances.What amount of federal income tax is withheld from her gross wages each week using the wage bracket table in Appendix A at the end of the chapter.

New employers are always considered to be monthly schedule depositors regardless of the amount of their federal tax liability during their first year.

A taxpayer had AGI of $300,000 in 2016 and AGI of $250,000 in 2015.When filing her 2016 return,she expects her unpaid tax liability to be at least $1,000.She must make estimated payments equal to the smaller of 90% of the tax shown on her 2016 return or

Harry has two jobs.He earns $118,700 from his first job and $10,000 from his second job.How much total FICA withholding will Harry have withheld from his wages from working two jobs?

The Anderson Company started its business on August 3rd.On August 14th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 28,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?

Household employees are subject to FICA withholding if they are paid at least what amount during 2016?

Self-employed taxpayers who also receive wages from an employer are not subject to FICA or federal withholding taxes.

Form 941 is a quarterly reconciliation report an employer sends to the IRS showing all federal payroll tax liability and payments for the period.

Daniel is a computer technical support representative earning $95,000 per year and also has a sole proprietor consulting business where he earned $28,000 for 2016.How much of his total earnings are subject to self-employment tax for 2016?

Copy A of the Form W-2 is a red scannable form that is sent directly to the Internal Revenue Service to track all wages for federal income tax and social security purposes.

If on any day during the month,an employer accumulates $100,000 or more in tax liability,the taxes must be deposited:

Employers are not required to withhold any federal taxes on allocated tips.

Loretta has two jobs.She earned $120,000 from her first job and $20,000 from her second job.How much total FICA taxes will Loretta have withheld from her wages from working two jobs?

Unless specifically excluded,what is the penalty for sending a required tax payment directly to the Internal Revenue Service?

Angie earned $124,200 during 2016.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in Medicare taxes for 2016?

Sandy is a self-employed health information coder.She has net earnings profit)from her business of $71,200.Her self-employment taxes for the year are: Round your answer to 2 decimal places.)

Alexandra earned $200 in tips in June.When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

Jean received a commission of $7,000 from her employer.How is the federal withholding tax on this payment calculated if she also earns semimonthly wages of $3,500?

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

The Anderson Company started its business on August 3^rd.On August 14^th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 28,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?