Question 1

Irene earned wages of $119,200 during 2015. What share of FICA tax is Irene's employer responsible for in 2015?

Accepted Answer

A)  $9,065.25. 
B)  $9,075.40. 
C)  $9,108.65. 
D) $9,118.80. 
A)  $9,065.25. 
B)  $9,075.40. 
C)  $9,108.65. 
D) $9,118.80. B

Question 2

Irene earned wages of $119,200 during 2015. How much will Irene's employer withhold in social security taxes for the year?

Accepted Answer

A)  $7,254.00. 
B)  $7,316.00. 
C)  $7,347.00. 
D) $7,390.40. 
A)  $7,254.00. 
B)  $7,316.00. 
C)  $7,347.00. 
D) $7,390.40. C

Question 3

The penalty for filing W-2s containing mismatched names and social security numbers is:

Accepted Answer

A)  $15 per return. 
B)  $30 per return. 
C)  $50 per form. 
D) $100 per return. 
A)  $15 per return. 
B)  $30 per return. 
C)  $50 per form. 
D) $100 per return. C

Question 4

Bonita is married and claims four exemptions on her W-4. Using the percentage method, what is Bonita's federal income tax withholding under the following independent conditions? (Round your answers two decimal places)
a. Bonita is paid semimonthly and her gross pay is $6,500 per paycheck.
b. Bonita is paid monthly and her gross pay is $16,000 per paycheck.
c. Bonita is paid biweekly and her gross pay is $4,500 per paycheck.

Accepted Answer

a. $1,018.

Question 5

For semiweekly schedule depositors, taxes withheld from payrolls paid during the week are due to be remitted within three banking days after the date wages are paid.

Accepted Answer

A) True 
 B)False

Question 6

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 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. 
B)  The deposit must be made by the last day of the month if the employer is a monthly schedule depositor. 
C)  The deposit is made either the following Wednesday or Friday regardless if the employer is a semiweekly schedule depositor. 
D) 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. 
A)  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. 
B)  The deposit must be made by the last day of the month if the employer is a monthly schedule depositor. 
C)  The deposit is made either the following Wednesday or Friday regardless if the employer is a semiweekly schedule depositor. 
D) 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.

Question 7

Shanita is a self-employed event planner. She has net earnings (profit) from her business of $63,220. Her self-employment taxes for the year are: (Round your answer two decimal places)

Accepted Answer

A)  $8,923.70. 
B)  $8,932.70. 
C)  $9,639.00. 
D) $9,672.66. 
A)  $8,923.70. 
B)  $8,932.70. 
C)  $9,639.00. 
D) $9,672.66.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Joe is paid $975 per week. Using the percentage method, what is the amount of federal income tax withheld from Joe's paycheck under the following situations? (Round your answers two decimal places)
a. Joe is single and claims zero (0) withholding allowances.
b. Joe is married and claims two withholding allowances.
c. Joe is single and claims two withholding allowances.

Accepted Answer

a. $151.85

Question 10

A taxpayer pays 6.2% of taxable wages for both social security and Medicare taxes.

Accepted Answer

A) True 
 B)False

Question 11

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

Question 12

Bubba earned a total of $221,100 for 2015. 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)  $10,741.95. 
D) $10,742.85. 
A)  $10,525.95. 
B)  $10,552.95. 
C)  $10,741.95. 
D) $10,742.85.

Question 13

Maeda Company has the following employees on the payroll:   Using the information above, what are the annual amounts that would be used to complete a Form W-2 for Hiroko.
a. Gross Wages:
b. Federal Withholding:
c. Social Security Tax:
d. Medicare Tax:

Accepted Answer

The answer of Maeda Company has the following employees on...

Question 14

The payroll tax withholding system was established to help fund governmental operations.

Accepted Answer

A) True 
 B)False

Question 15

Nikki's salary is $209,950 in 2015. How much social security and Medicare taxes will be withheld from Nikki's salary for the year?

Accepted Answer

The answer of Nikki's salary is $209,950 in 2015. How...

Question 16

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 17

If a taxpayer works for two separate employers, how much in FUTA taxes is each employer responsible to remit in the name of the taxpayer?

Accepted Answer

A)  Only the first employer is required to remit FUTA taxes on the wages earned from the first job. 
B)  Both employers must remit FUTA taxes on the first $7,000 in wages they pay to the taxpayer. 
C)  The first employer remits 5.4% on the first $7,000 in wages while the second employer remits only .6% on the first $7,000 in wages to equal the 6.0% rate. 
D) The first employer remits FUTA tax on the first $7,000 in wages and the second employer remits FUTA tax on the next $7,000 in wages. 
A)  Only the first employer is required to remit FUTA taxes on the wages earned from the first job. 
B)  Both employers must remit FUTA taxes on the first $7,000 in wages they pay to the taxpayer. 
C)  The first employer remits 5.4% on the first $7,000 in wages while the second employer remits only .6% on the first $7,000 in wages to equal the 6.0% rate. 
D) The first employer remits FUTA tax on the first $7,000 in wages and the second employer remits FUTA tax on the next $7,000 in wages.

Question 18

Sergio is single, is paid $2,400 per week, and claims one withholding allowance. What is the amount of federal income tax withheld from Sergio's gross wages for the week using the percentage method? (Round your answer two decimal places)

Accepted Answer

A)  $377.68. 
B)  $488.88. 
C)  $504.90. 
D) $526.43. 
A)  $377.68. 
B)  $488.88. 
C)  $504.90. 
D) $526.43.

Question 19

Jack is married, is paid $5,000 biweekly, and claims four allowances. What amount of federal income tax is withheld from his gross wages each pay period?

Accepted Answer

A)  $643.25. 
B)  $656.15. 
C)  $665.15. 
D) $689.90. 
A)  $643.25. 
B)  $656.15. 
C)  $665.15. 
D) $689.90.

Question 20

Eva earned $89 in tips in March. When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

Accepted Answer

A)  April 10. 
B)  April 30. 
C)  March 31. 
D) Tips are not subject to payroll taxes if less than $90 in any one month. 
A)  April 10. 
B)  April 30. 
C)  March 31. 
D) Tips are not subject to payroll taxes if less than $90 in any one month.

Irene earned wages of $119,200 during 2015. What share of FICA tax is Irene's employer responsible for in 2015?

Irene earned wages of $119,200 during 2015. How much will Irene's employer withhold in social security taxes for the year?

The penalty for filing W-2s containing mismatched names and social security numbers is:

For semiweekly schedule depositors, taxes withheld from payrolls paid during the week are due to be remitted within three banking days after the date wages are paid.

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:

Shanita is a self-employed event planner. She has net earnings (profit) from her business of $63,220. Her self-employment taxes for the year are: (Round your answer two decimal places)

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

A taxpayer pays 6.2% of taxable wages for both social security and Medicare taxes.

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

Bubba earned a total of $221,100 for 2015. How much FICA tax is his employer required to withhold from Bubba's paychecks for the year?

Maeda Company has the following employees on the payroll: Using the information above, what are the annual amounts that would be used to complete a Form W-2 for Hiroko. a. Gross Wages: b. Federal Withholding: c. Social Security Tax: d. Medicare Tax:

The payroll tax withholding system was established to help fund governmental operations.

Nikki's salary is $209,950 in 2015. How much social security and Medicare taxes will be withheld from Nikki's salary for the year?

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

If a taxpayer works for two separate employers, how much in FUTA taxes is each employer responsible to remit in the name of the taxpayer?

Sergio is single, is paid $2,400 per week, and claims one withholding allowance. What is the amount of federal income tax withheld from Sergio's gross wages for the week using the percentage method? (Round your answer two decimal places)

Jack is married, is paid $5,000 biweekly, and claims four allowances. What amount of federal income tax is withheld from his gross wages each pay period?

Eva earned $89 in tips in March. When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, Income From Flow-Through Entities

Tax Credits

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

Irene earned wages of $119,200 during 2015. What share of FICA tax is Irene's employer responsible for in 2015?

Irene earned wages of $119,200 during 2015. How much will Irene's employer withhold in social security taxes for the year?

The penalty for filing W-2s containing mismatched names and social security numbers is:

For semiweekly schedule depositors, taxes withheld from payrolls paid during the week are due to be remitted within three banking days after the date wages are paid.

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:

Shanita is a self-employed event planner. She has net earnings (profit) from her business of $63,220. Her self-employment taxes for the year are: (Round your answer two decimal places)

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

A taxpayer pays 6.2% of taxable wages for both social security and Medicare taxes.

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

Bubba earned a total of $221,100 for 2015. How much FICA tax is his employer required to withhold from Bubba's paychecks for the year?

Maeda Company has the following employees on the payroll: Using the information above, what are the annual amounts that would be used to complete a Form W-2 for Hiroko. a. Gross Wages: b. Federal Withholding: c. Social Security Tax: d. Medicare Tax:

The payroll tax withholding system was established to help fund governmental operations.

Nikki's salary is $209,950 in 2015. How much social security and Medicare taxes will be withheld from Nikki's salary for the year?

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

If a taxpayer works for two separate employers, how much in FUTA taxes is each employer responsible to remit in the name of the taxpayer?

Sergio is single, is paid $2,400 per week, and claims one withholding allowance. What is the amount of federal income tax withheld from Sergio's gross wages for the week using the percentage method? (Round your answer two decimal places)

Jack is married, is paid $5,000 biweekly, and claims four allowances. What amount of federal income tax is withheld from his gross wages each pay period?

Eva earned $89 in tips in March. When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, Income From Flow-Through Entities

Tax Credits

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