Question 1

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

Accepted Answer

A)  $1,696.50. 
B)  $1,711.00. 
C)  $1,718.25. 
D) $1,720.43. 
A)  $1,696.50. 
B)  $1,711.00. 
C)  $1,718.25. 
D) $1,720.43.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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 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. 
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 regular wages, the commission is added to the wages and the entire amount is subject to withholding at a rate of 25%. 
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 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. 
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 regular wages, the commission is added to the wages and the entire amount is subject to withholding at a rate of 25%. 
D) If taxes have already been withheld from Jean's wages separately, the commission is subject to backup withholding of 28%.

Question 4

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:

Accepted Answer

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

Question 5

Hank received a bonus of $5,000 from his employer. How is the federal withholding tax on this payment calculated if he also earns biweekly wages of $2,000?

Accepted Answer

A)  If taxes have already been withheld from his wages separately, the bonus is taxed at a flat rate of 25%. 
B)  If taxes have already been withheld from Hank's wages separately, the bonus is subject to a backup withholding rate of 28%. 
C)  If taxes have not been already withheld from Hank's regular wage, the bonus is added to the wages and withheld at the rate of 25%. 
D) If taxes have already been withheld from Hank's wages separately, the bonus is added to the wages and federal taxes are withheld at this combined amount. Any excess taxes withheld this period will be refunded to Hank on his next paycheck. 
A)  If taxes have already been withheld from his wages separately, the bonus is taxed at a flat rate of 25%. 
B)  If taxes have already been withheld from Hank's wages separately, the bonus is subject to a backup withholding rate of 28%. 
C)  If taxes have not been already withheld from Hank's regular wage, the bonus is added to the wages and withheld at the rate of 25%. 
D) If taxes have already been withheld from Hank's wages separately, the bonus is added to the wages and federal taxes are withheld at this combined amount. Any excess taxes withheld this period will be refunded to Hank on his next paycheck.

Question 6

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 7

Angie earned $120,000 during 2015. She is single, claims two withholding allowances, and is paid monthly. How much FICA tax must Angie's employer remit to the federal government in 2015?

Accepted Answer

A)  $18,130.05. 
B)  $18,174.00. 
C)  $18,288.00. 
D) $18,360.00. 
A)  $18,130.05. 
B)  $18,174.00. 
C)  $18,288.00. 
D) $18,360.00.

Question 8

On January 3, 2015, Norman employed a part-time household worker in his home. He paid the household worker $400 per month for 2015. What amount of FICA taxes is Norman required to record on Schedule H?

Accepted Answer

A)  $0. 
B)  $542.40. 
C)  $589.56. 
D) $734.40. 
A)  $0. 
B)  $542.40. 
C)  $589.56. 
D) $734.40.

Question 9

If a taxpayer works for more than one employer during the year, how much in FUTA taxes is remitted in the name of the taxpayer?

Accepted Answer

A)  Only the first employer is required to remit FUTA taxes on the wages earned. 
B)  If the employee earns more than $7,000 at the first job, all other employers are exempt from paying FUTA taxes for this employee during the year. 
C)  If the employee earns less than $7,000 at the first job, the next employer must remit FUTA taxes until the employee has earned a total of $7,000. 
D) Both employers must remit FUTA taxes they pay to the employee on the first $7,000 of wages earned by the employee at each job. 
A)  Only the first employer is required to remit FUTA taxes on the wages earned. 
B)  If the employee earns more than $7,000 at the first job, all other employers are exempt from paying FUTA taxes for this employee during the year. 
C)  If the employee earns less than $7,000 at the first job, the next employer must remit FUTA taxes until the employee has earned a total of $7,000. 
D) Both employers must remit FUTA taxes they pay to the employee on the first $7,000 of wages earned by the employee at each job.

Question 10

The payroll period for a semiweekly schedule depositor ends and is paid on a Friday. The employer must deposit the federal taxes withheld for this pay period on or before:

Accepted Answer

A)  The last day of the month. 
B)  The following Friday. 
C)  The following Wednesday. 
D) The following Monday. 
A)  The last day of the month. 
B)  The following Friday. 
C)  The following Wednesday. 
D) The following Monday.

Question 11

Esmeralda is single and is paid $759 per week claiming two allowances. What is the amount of federal income tax withheld on Esmeralda's gross wages for the week? Use the wage bracket table in Appendix A at the end of the chapter.

Accepted Answer

A)  $75. 
B)  $76. 
C)  $86. 
D) $88. 
A)  $75. 
B)  $76. 
C)  $86. 
D) $88.

Question 12

Arlene is a college professor earning $90,000 and also has a sole proprietor consulting practice where she earned $28,000 for 2015. How much of her total earnings are subject to self-employment tax for 2015?

Accepted Answer

A)  $25,588. 
B)  $25,858. 
C)  $27,000. 
D) $28,000. 
A)  $25,588. 
B)  $25,858. 
C)  $27,000. 
D) $28,000.

Question 13

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

Accepted Answer

A)  None. 
B)  5.4% if all state unemployment taxes have been paid. 
C)  6.0% if all state unemployment taxes have been paid. 
D) 90% of the maximum rate allowed for state unemployment. 
A)  None. 
B)  5.4% if all state unemployment taxes have been paid. 
C)  6.0% if all state unemployment taxes have been paid. 
D) 90% of the maximum rate allowed for state unemployment.

Question 14

Form 941 is prepared by the employer on a quarterly basis to record all of the following payroll taxes except:

Accepted Answer

A)  FUTA. 
B)  Social security tax. 
C)  Medicare tax. 
D) Federal withholding tax. 
A)  FUTA. 
B)  Social security tax. 
C)  Medicare tax. 
D) Federal withholding tax.

Question 15

An employer who is a monthly schedule depositor and accumulates a $100,000 tax liability on any day must pay the tax on the next business day and is allowed by law to remain a monthly schedule depositor until the next year when the employer will become a semiweekly schedule depositor.

Accepted Answer

A) True 
 B)False

Question 16

Maeda Company has the following employees on the payroll:   Using the information above:
a. Calculate the FUTA tax liability for 2015. 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 2015?

Accepted Answer

a. $7,000 × .6% = $4

Question 17

K. Kruse Designs has the following employees:   K. Kruse Designs receives the maximum credit for state unemployment taxes. Calculate the FUTA tax that the employer owes for the year. Assume the employees are paid a regular salary throughout the year.

Accepted Answer

The answer of K. Kruse Designs has the following employees:...

Question 18

Household employees are subject to FICA withholding if they are paid at least what amount during 2015?

Accepted Answer

A)  $1,600. 
B)  $1,700. 
C)  $1,800. 
D) $1,900. 
A)  $1,600. 
B)  $1,700. 
C)  $1,800. 
D) $1,900.

Question 19

Employers must prepare and send to employees the multi-part W-3 no later than January 31 of the following year.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

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

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

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

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?

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:

Hank received a bonus of $5,000 from his employer. How is the federal withholding tax on this payment calculated if he also earns biweekly wages of $2,000?

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

Angie earned $120,000 during 2015. She is single, claims two withholding allowances, and is paid monthly. How much FICA tax must Angie's employer remit to the federal government in 2015?

On January 3, 2015, Norman employed a part-time household worker in his home. He paid the household worker $400 per month for 2015. What amount of FICA taxes is Norman required to record on Schedule H?

If a taxpayer works for more than one employer during the year, how much in FUTA taxes is remitted in the name of the taxpayer?

The payroll period for a semiweekly schedule depositor ends and is paid on a Friday. The employer must deposit the federal taxes withheld for this pay period on or before:

Esmeralda is single and is paid $759 per week claiming two allowances. What is the amount of federal income tax withheld on Esmeralda's gross wages for the week? Use the wage bracket table in Appendix A at the end of the chapter.

Arlene is a college professor earning $90,000 and also has a sole proprietor consulting practice where she earned $28,000 for 2015. How much of her total earnings are subject to self-employment tax for 2015?

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

Form 941 is prepared by the employer on a quarterly basis to record all of the following payroll taxes except:

An employer who is a monthly schedule depositor and accumulates a $100,000 tax liability on any day must pay the tax on the next business day and is allowed by law to remain a monthly schedule depositor until the next year when the employer will become a semiweekly schedule depositor.

K. Kruse Designs has the following employees: K. Kruse Designs receives the maximum credit for state unemployment taxes. Calculate the FUTA tax that the employer owes for the year. Assume the employees are paid a regular salary throughout the year.

Household employees are subject to FICA withholding if they are paid at least what amount during 2015?

Employers must prepare and send to employees the multi-part W-3 no later than January 31 of the following year.

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

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

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

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

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?

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:

Hank received a bonus of $5,000 from his employer. How is the federal withholding tax on this payment calculated if he also earns biweekly wages of $2,000?

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

Angie earned $120,000 during 2015. She is single, claims two withholding allowances, and is paid monthly. How much FICA tax must Angie's employer remit to the federal government in 2015?

On January 3, 2015, Norman employed a part-time household worker in his home. He paid the household worker $400 per month for 2015. What amount of FICA taxes is Norman required to record on Schedule H?

If a taxpayer works for more than one employer during the year, how much in FUTA taxes is remitted in the name of the taxpayer?

The payroll period for a semiweekly schedule depositor ends and is paid on a Friday. The employer must deposit the federal taxes withheld for this pay period on or before:

Esmeralda is single and is paid $759 per week claiming two allowances. What is the amount of federal income tax withheld on Esmeralda's gross wages for the week? Use the wage bracket table in Appendix A at the end of the chapter.

Arlene is a college professor earning $90,000 and also has a sole proprietor consulting practice where she earned $28,000 for 2015. How much of her total earnings are subject to self-employment tax for 2015?

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

Form 941 is prepared by the employer on a quarterly basis to record all of the following payroll taxes except:

An employer who is a monthly schedule depositor and accumulates a $100,000 tax liability on any day must pay the tax on the next business day and is allowed by law to remain a monthly schedule depositor until the next year when the employer will become a semiweekly schedule depositor.

K. Kruse Designs has the following employees: K. Kruse Designs receives the maximum credit for state unemployment taxes. Calculate the FUTA tax that the employer owes for the year. Assume the employees are paid a regular salary throughout the year.

Household employees are subject to FICA withholding if they are paid at least what amount during 2015?

Employers must prepare and send to employees the multi-part W-3 no later than January 31 of the following year.

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

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