Question 1

Which of the following conditions requires an employer to use the electronic deposit requirement?

Accepted Answer

A) Employer made more than $100,000 in total tax deposits in 2015. 
B) All employers are required to use the electronic funds transfer. 
C) Employer made more than $100,000 in total tax deposits in 2016. 
D) Employer made more than $200,000 in total tax deposits in 2015. 
A) Employer made more than $100,000 in total tax deposits in 2015. 
B) All employers are required to use the electronic funds transfer. 
C) Employer made more than $100,000 in total tax deposits in 2016. 
D) Employer made more than $200,000 in total tax deposits in 2015.

Question 2

A taxpayer with an AGI of $157,350 for 2016 pays estimated taxes.The taxpayer can avoid an underpayment penalty by paying:

Accepted Answer

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

Question 3

When calculating the FUTA tax due,an employer can qualify for a 5.4% maximum credit for state unemployment taxes paid.

Accepted Answer

A) True 
 B)False

Question 4

Juan is married,is paid 2,200 per week,and claims three withholding allowances.What is the amount of federal income tax withheld from Juan's gross wages for the week using the percentage method? Round your answer to 2 decimal places.)

Accepted Answer

A) $346.25. 
B) $287.83. 
C) $404.58. 
D) $298.42. 
A) $346.25. 
B) $287.83. 
C) $404.58. 
D) $298.42.

Question 5

On January 3,2016,Terrence employed a part-time household worker in his home.He paid the household worker $720 per month for 2016.What amount of FICA taxes is Terrence required to record on Schedule H?

Accepted Answer

A) $1,220.79. 
B) $1,363.92. 
C) $1,321.92. 
D) $1,296.00. 
A) $1,220.79. 
B) $1,363.92. 
C) $1,321.92. 
D) $1,296.00.

Question 6

In the lookback period,if the employer reported total payroll taxes of more than $50,000,the employer is a semiweekly schedule depositor.

Accepted Answer

A) True 
 B)False

Question 7

Danita is married and is paid $4,875 semimonthly.She claims four withholding allowances.What amount of federal income tax will be withheld from Danita's gross wages for each payroll period? Round your answer to 2 decimal places.)

Accepted Answer

A) $777.29. 
B) $621.50. 
C) $811.25. 
D) $608.50. 
A) $777.29. 
B) $621.50. 
C) $811.25. 
D) $608.50.

Question 8

The more exemptions claimed,the more tax that is withheld and the smaller the net check.

Accepted Answer

A) True 
 B)False

Question 9

Mahmet earned wages of $118,700 during 2016.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in social security taxes for the year? Round your answer to 2 decimal places.)

Accepted Answer

A) $7,347.00. 
B) $7,359.40. 
C) $7,353.20. 
D) $7,316.00. 
A) $7,347.00. 
B) $7,359.40. 
C) $7,353.20. 
D) $7,316.00.

Question 10

If,on any day during the month,an employer who is a monthly schedule depositor accumulates a $100,000 tax liability,which of the following statements is true?

Accepted Answer

A) The deposit must be made by the last day of the month if the employer is a monthly schedule depositor. 
B) The employer remits the tax by the next banking day and is now considered a semiweekly depositor for the remainder of the current year and for the entire following year. 
C) The employer remits the tax by the next banking day and becomes a semiweekly depositor for the remainder of the calendar year,then goes back to being a monthly scheduled depositor in the following year. 
D) The deposit is made either the following Wednesday or Friday regardless if the employer is a semiweekly schedule depositor. 
A) The deposit must be made by the last day of the month if the employer is a monthly schedule depositor. 
B) The employer remits the tax by the next banking day and is now considered a semiweekly depositor for the remainder of the current year and for the entire following year. 
C) The employer remits the tax by the next banking day and becomes a semiweekly depositor for the remainder of the calendar year,then goes back to being a monthly scheduled depositor in the following year. 
D) The deposit is made either the following Wednesday or Friday regardless if the employer is a semiweekly schedule depositor.

Question 11

Mahmet earned wages of $118,700 during 2016.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in Medicare taxes for the year?

Accepted Answer

A) $1,711.00. 
B) $1,718.25. 
C) $1,722.60. 
D) $1,721.15. 
A) $1,711.00. 
B) $1,718.25. 
C) $1,722.60. 
D) $1,721.15.

Question 12

In a large food or beverage establishment,on what form or schedule is any tip shortfall from a directly tipped employee recorded?

Accepted Answer

A) Form 8027. 
B) Form 8109. 
C) Form 4070. 
D) Schedule C. 
A) Form 8027. 
B) Form 8109. 
C) Form 4070. 
D) Schedule C.

Question 13

Employers are required to deposit FUTA taxes when their liability exceeds:

Accepted Answer

A) $1,000. 
B) $100. 
C) $500. 
D) $2,500. 
A) $1,000. 
B) $100. 
C) $500. 
D) $2,500.

Question 14

Claude works as a teacher during the year at the local high school.He also prepares taxes on a part-time basis.During 2016,Claude earned $84,800 from his job as a teacher.He also earned
$12,000 preparing taxes from January to April 2016.He operates his tax preparation business as a sole proprietorship.Claude estimates that he will owe $2,036 more in income taxes for 2016.
Explain what Claude should do so that he does not incur any underpayment penalties.

Accepted Answer

Claude should file the Form 1040-ES and

Question 15

The amount withheld from supplemental payments depends on whether the employer accounts for the payment separate from regular wages.

Accepted Answer

A) True 
 B)False

Question 16

A taxpayer who has overpaid the social security portion of the FICA tax because his or her combined taxable income from multiple jobs exceeds the annual wage base is entitled to receive the excess as a refund even if there is federal tax owed on the 1040 return.

Accepted Answer

A) True 
 B)False

Question 17

Nikki's salary is $209,950 in 2016.How much social security and Medicare taxes will be withheld from Nikki's salary for the year? Round your answer to 2 decimal places.)

Accepted Answer

The answer of Nikki's salary is $209,950 in 2016.How much...

Question 18

Employers with a payroll tax liability of less than $2,500 at the end of any quarter pay their tax liability:

Accepted Answer

A) Directly to the authorized depository on the same day the Form 941 is mailed. 
B) Directly only if they use the EFTPS form of payment before Form 941 is filed. 
C) Directly to the authorized depository after the end of the quarter when Form 941 is filed. 
D) Directly to the Internal Revenue Service when they file Form 941. 
A) Directly to the authorized depository on the same day the Form 941 is mailed. 
B) Directly only if they use the EFTPS form of payment before Form 941 is filed. 
C) Directly to the authorized depository after the end of the quarter when Form 941 is filed. 
D) Directly to the Internal Revenue Service when they file Form 941.

Question 19

Jan hired Mike to dog sit for her beloved but lonely pooch,Barney while she worked)starting on January 4,2016 at $300 per month.Jan does not withhold any federal taxes.
a.How much payroll tax should Jan pay for the year?
b.If Mike came to Jan's house to walk Barney once a day and also walked other dogs in the neighborhood,is Jan required to complete Schedule H? Explain.

Accepted Answer

a.$300 × 12 = $3,600 × .153 =

Question 20

Payroll tax deposits are made to any authorized financial depository or through an electronic funds transfer payment system.

Accepted Answer

A) True 
 B)False

Which of the following conditions requires an employer to use the electronic deposit requirement?

A taxpayer with an AGI of $157,350 for 2016 pays estimated taxes.The taxpayer can avoid an underpayment penalty by paying:

When calculating the FUTA tax due,an employer can qualify for a 5.4% maximum credit for state unemployment taxes paid.

Juan is married,is paid 2,200 per week,and claims three withholding allowances.What is the amount of federal income tax withheld from Juan's gross wages for the week using the percentage method? Round your answer to 2 decimal places.)

On January 3,2016,Terrence employed a part-time household worker in his home.He paid the household worker $720 per month for 2016.What amount of FICA taxes is Terrence required to record on Schedule H?

In the lookback period,if the employer reported total payroll taxes of more than $50,000,the employer is a semiweekly schedule depositor.

Danita is married and is paid $4,875 semimonthly.She claims four withholding allowances.What amount of federal income tax will be withheld from Danita's gross wages for each payroll period? Round your answer to 2 decimal places.)

The more exemptions claimed,the more tax that is withheld and the smaller the net check.

Mahmet earned wages of $118,700 during 2016.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in social security taxes for the year? Round your answer to 2 decimal places.)

If,on any day during the month,an employer who is a monthly schedule depositor accumulates a $100,000 tax liability,which of the following statements is true?

Mahmet earned wages of $118,700 during 2016.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in Medicare taxes for the year?

In a large food or beverage establishment,on what form or schedule is any tip shortfall from a directly tipped employee recorded?

Employers are required to deposit FUTA taxes when their liability exceeds:

The amount withheld from supplemental payments depends on whether the employer accounts for the payment separate from regular wages.

A taxpayer who has overpaid the social security portion of the FICA tax because his or her combined taxable income from multiple jobs exceeds the annual wage base is entitled to receive the excess as a refund even if there is federal tax owed on the 1040 return.

Nikki's salary is $209,950 in 2016.How much social security and Medicare taxes will be withheld from Nikki's salary for the year? Round your answer to 2 decimal places.)

Employers with a payroll tax liability of less than $2,500 at the end of any quarter pay their tax liability:

Payroll tax deposits are made to any authorized financial depository or through an electronic funds transfer payment system.

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 conditions requires an employer to use the electronic deposit requirement?

A taxpayer with an AGI of $157,350 for 2016 pays estimated taxes.The taxpayer can avoid an underpayment penalty by paying:

When calculating the FUTA tax due,an employer can qualify for a 5.4% maximum credit for state unemployment taxes paid.

Juan is married,is paid 2,200 per week,and claims three withholding allowances.What is the amount of federal income tax withheld from Juan's gross wages for the week using the percentage method? Round your answer to 2 decimal places.)

On January 3,2016,Terrence employed a part-time household worker in his home.He paid the household worker $720 per month for 2016.What amount of FICA taxes is Terrence required to record on Schedule H?

In the lookback period,if the employer reported total payroll taxes of more than $50,000,the employer is a semiweekly schedule depositor.

Danita is married and is paid $4,875 semimonthly.She claims four withholding allowances.What amount of federal income tax will be withheld from Danita's gross wages for each payroll period? Round your answer to 2 decimal places.)

The more exemptions claimed,the more tax that is withheld and the smaller the net check.

Mahmet earned wages of $118,700 during 2016.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in social security taxes for the year? Round your answer to 2 decimal places.)

If,on any day during the month,an employer who is a monthly schedule depositor accumulates a $100,000 tax liability,which of the following statements is true?

Mahmet earned wages of $118,700 during 2016.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in Medicare taxes for the year?

In a large food or beverage establishment,on what form or schedule is any tip shortfall from a directly tipped employee recorded?

Employers are required to deposit FUTA taxes when their liability exceeds:

The amount withheld from supplemental payments depends on whether the employer accounts for the payment separate from regular wages.

A taxpayer who has overpaid the social security portion of the FICA tax because his or her combined taxable income from multiple jobs exceeds the annual wage base is entitled to receive the excess as a refund even if there is federal tax owed on the 1040 return.

Nikki's salary is $209,950 in 2016.How much social security and Medicare taxes will be withheld from Nikki's salary for the year? Round your answer to 2 decimal places.)

Employers with a payroll tax liability of less than $2,500 at the end of any quarter pay their tax liability:

Payroll tax deposits are made to any authorized financial depository or through an electronic funds transfer payment system.

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