Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

Employees claim withholding allowances on Form W-4. For each withholding allowance claimed, their withholding base is reduced by what amount for calendar year 2015?

Accepted Answer

A)  $3,850. 
B)  $3,900. 
C)  $3,950. 
D) $4,000. 
A)  $3,850. 
B)  $3,900. 
C)  $3,950. 
D) $4,000.

Question 4

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)  $144.00. 
C)  $154.00. 
D) $155.00. 
A)  $142.00. 
B)  $144.00. 
C)  $154.00. 
D) $155.00.

Question 5

For wages paid in 2015, an employer must send Copy A of each Form W-2 along with the W-3 transmittal form to the SSA no later than:

Accepted Answer

A)  January 31, 2015. 
B)  February 1, 2015. 
C)  February 28, 2015. 
D) March 1, 2015. 
A)  January 31, 2015. 
B)  February 1, 2015. 
C)  February 28, 2015. 
D) March 1, 2015.

Question 6

Maeda Company has the following employees on the payroll:   Using the information above, calculate the payroll taxes (FICA, federal withholding) for each employee for one payroll period. Assume that Maeda Company receives the maximum credit for state unemployment contributions. Use the percentage method for calculating FIT.

Accepted Answer

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

Question 7

Supplemental wages are only subject to FICA taxes and federal withholding taxes and are not subject to SUTA or FUTA taxes.

Accepted Answer

A) True 
 B)False

Question 8

Unemployment tax payments are made by federal and state governmental agencies directly to the taxpayer who is unemployed.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

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

Question 11

Mahmet earned wages of $118,650 during 2015. He is single and claims two withholding allowances. How much will Mahmet's employer withhold in social security taxes for the year?

Accepted Answer

A)  $7,347.00. 
B)  $7,356.30. 
C)  $9,027.00. 
D) $9,065.25. 
A)  $7,347.00. 
B)  $7,356.30. 
C)  $9,027.00. 
D) $9,065.25.

Question 12

Angie earned $120,000 during 2015. She is single, claims two withholding allowances, and is paid monthly. How much federal withholding tax will Angie's employer withhold for 2015?

Accepted Answer

A)  $23,786.76. 
B)  $23,787.25. 
C)  $23,787.98. 
D) $23,788.95. 
A)  $23,786.76. 
B)  $23,787.25. 
C)  $23,787.98. 
D) $23,788.95.

Question 13

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

Question 14

Household workers are subject to FUTA tax only if cash wages of $1,400 or more are paid in any calendar quarter during the prior and/or current year.

Accepted Answer

A) True 
 B)False

Question 15

Mahmet earned wages of $118,650 during 2015. He is single and claims two withholding allowances. How much FICA tax is Mahmet's employer responsible to remit in 2015?

Accepted Answer

A)  $18,054.00. 
B)  $18,130.50. 
C)  $18,134.86. 
D) $18,153.45. 
A)  $18,054.00. 
B)  $18,130.50. 
C)  $18,134.86. 
D) $18,153.45.

Question 16

Schedule H is completed by the household worker and remitted with his/her Form 1040.

Accepted Answer

A) True 
 B)False

Question 17

Maeda Company has the following employees on the payroll:   Using the above information calculate the FICA taxes and federal income tax for the second quarter of 2015. Assume that the payroll is consistent every pay period in January through June and that all tax deposits were made on a timely basis as required for the prior quarter. What is the total tax liability due for the second quarter?

Accepted Answer

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

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Nikki's salary is $209,950 in 2015. She is paid on a biweekly basis, is single and claims zero allowances.
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. $2,005.

Question 20

The withholding tables are structured so that employers withhold approximately the same amount for a given annual income regardless of how often the employee is paid.

Accepted Answer

A) True 
 B)False

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

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

Employees claim withholding allowances on Form W-4. For each withholding allowance claimed, their withholding base is reduced by what amount for calendar year 2015?

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.

For wages paid in 2015, an employer must send Copy A of each Form W-2 along with the W-3 transmittal form to the SSA no later than:

Supplemental wages are only subject to FICA taxes and federal withholding taxes and are not subject to SUTA or FUTA taxes.

Unemployment tax payments are made by federal and state governmental agencies directly to the taxpayer who is unemployed.

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

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

Mahmet earned wages of $118,650 during 2015. He is single and claims two withholding allowances. How much will Mahmet's employer withhold in social security taxes for the year?

Angie earned $120,000 during 2015. She is single, claims two withholding allowances, and is paid monthly. How much federal withholding tax will Angie's employer withhold for 2015?

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 $1,400 or more are paid in any calendar quarter during the prior and/or current year.

Mahmet earned wages of $118,650 during 2015. He is single and claims two withholding allowances. How much FICA tax is Mahmet's employer responsible to remit in 2015?

Schedule H is completed by the household worker and remitted with his/her Form 1040.

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

Nikki's salary is $209,950 in 2015. She is paid on a biweekly basis, is single and claims zero allowances. 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 withholding tables are structured so that employers withhold approximately the same amount for a given annual income regardless of how often the employee is paid.

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

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

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

Employees claim withholding allowances on Form W-4. For each withholding allowance claimed, their withholding base is reduced by what amount for calendar year 2015?

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.

For wages paid in 2015, an employer must send Copy A of each Form W-2 along with the W-3 transmittal form to the SSA no later than:

Supplemental wages are only subject to FICA taxes and federal withholding taxes and are not subject to SUTA or FUTA taxes.

Unemployment tax payments are made by federal and state governmental agencies directly to the taxpayer who is unemployed.

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

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

Mahmet earned wages of $118,650 during 2015. He is single and claims two withholding allowances. How much will Mahmet's employer withhold in social security taxes for the year?

Angie earned $120,000 during 2015. She is single, claims two withholding allowances, and is paid monthly. How much federal withholding tax will Angie's employer withhold for 2015?

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 $1,400 or more are paid in any calendar quarter during the prior and/or current year.

Mahmet earned wages of $118,650 during 2015. He is single and claims two withholding allowances. How much FICA tax is Mahmet's employer responsible to remit in 2015?

Schedule H is completed by the household worker and remitted with his/her Form 1040.

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

Nikki's salary is $209,950 in 2015. She is paid on a biweekly basis, is single and claims zero allowances. 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 withholding tables are structured so that employers withhold approximately the same amount for a given annual income regardless of how often the employee is paid.

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