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 2014. 
B)  Employer made more than $100,000 in total tax deposits in 2015. 
C)  All employers are required to use the electronic funds transfer. 
D) Employer made more than $200,000 in total tax deposits in 2014. 
A)  Employer made more than $100,000 in total tax deposits in 2014. 
B)  Employer made more than $100,000 in total tax deposits in 2015. 
C)  All employers are required to use the electronic funds transfer. 
D) Employer made more than $200,000 in total tax deposits in 2014.

Question 2

The credit against "payroll taxes" for providing COBRA premium assistance to eligible individuals is recorded using Form 941-X.

Accepted Answer

A) True 
 B)False

Question 3

FICA taxes are collected equally from the employee and the employer.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements regarding the lookback period for 2015 is correct?

Accepted Answer

A)  The lookback period consists of the four quarters starting January 1, 2014 through December 31, 2014. 
B)  The lookback period consists of the four quarters starting April 1, 2013 through March 31, 2014. 
C)  The lookback period consists of the four quarters starting July 1, 2013 through June 30, 2014. 
D) The lookback period consists of the four quarters starting October 1, 2013 through September 30, 2014. 
A)  The lookback period consists of the four quarters starting January 1, 2014 through December 31, 2014. 
B)  The lookback period consists of the four quarters starting April 1, 2013 through March 31, 2014. 
C)  The lookback period consists of the four quarters starting July 1, 2013 through June 30, 2014. 
D) The lookback period consists of the four quarters starting October 1, 2013 through September 30, 2014.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 2015. How much of his total earnings are subject to self-employment tax for 2015?

Accepted Answer

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

Question 7

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

Accepted Answer

A)  $1,696.50. 
B)  $1,711.00. 
C)  $1,718.25. 
D) $1,728.40. 
A)  $1,696.50. 
B)  $1,711.00. 
C)  $1,718.25. 
D) $1,728.40.

Question 8

Carolyne earns $150,000 per year. She is married and claims two withholding allowances. Use the percentage method for your calculations. (Round your answers two decimal places)
a. What is her withholding per pay period if she is paid on a weekly basis (assume 52 weeks)?
b. What is her withholding per pay period if she is paid on a semimonthly basis?
c. What is her withholding per pay period if she is paid on a monthly basis?
d. In each of the above circumstances, should the annual withholding amount differ? Explain.

Accepted Answer

a. $479.61
b. $1,039.10
c. $2,

Question 9

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

Question 10

Danita is married and is paid $4,350 biweekly. She claims three withholding allowances. What amount of federal income tax will be withheld from Danita's gross wages for each payroll period? (Round your answer two decimal places)

Accepted Answer

A)  $522.43. 
B)  $565.85. 
C)  $586.15. 
D) $642.75. 
A)  $522.43. 
B)  $565.85. 
C)  $586.15. 
D) $642.75.

Question 11

Sharon is single and is paid $3,782 biweekly and claims one withholding allowance. What amount of federal income tax will be withheld from Sharon's gross wages for each payroll period?

Accepted Answer

A)  $500.75. 
B)  $539.20. 
C)  $704.63. 
D) $724.68. 
A)  $500.75. 
B)  $539.20. 
C)  $704.63. 
D) $724.68.

Question 12

GTW Inc., did not make timely deposits for SUTA purposes and its state wages subject to SUTA and FUTA were $289,000. Assume the wage limit was reached prior to July 1, 2015.
a. Calculate the amount of tax due on the 940.
b. How much would the FUTA tax have been if GTW made timely deposits to its state fund?

Accepted Answer

a. $3,294.

Question 13

Ebony earned $86,760 during 2015. She is single, paid semimonthly, and claims one withholding allowance. How much will Ebony's employer withhold from her, in total for each pay period for FICA and federal withholding taxes?

Accepted Answer

A)  $939.43. 
B)  $958.00. 
C)  $993.43. 
D) $1,003.85. 
A)  $939.43. 
B)  $958.00. 
C)  $993.43. 
D) $1,003.85.

Question 14

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 15

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 16

Although the federal unemployment tax is 6.0% of covered wages, employers receive a 5.4% federal credit if they make accurate and timely state unemployment tax deposits.

Accepted Answer

A) True 
 B)False

Question 17

The Anderson Company started its business on August 3, 2015. 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)  Monthly because its accumulated tax liability is not more than $100,000 on any one day. 
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) Semiweekly for this pay period only and then monthly for the remainder of the year. 
A)  Monthly because its accumulated tax liability is not more than $100,000 on any one day. 
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) Semiweekly for this pay period only and then monthly for the remainder of the year.

Question 18

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

Accepted Answer

A)  $1,680.00. 
B)  $1,711.00. 
C)  $1,718.25. 
D) $1,740.00. 
A)  $1,680.00. 
B)  $1,711.00. 
C)  $1,718.25. 
D) $1,740.00.

Question 19

Failure to furnish a correct TIN to a requester (payer) can result in a penalty to the payee of:

Accepted Answer

A)  $0, it is the responsibility of the payer (requester) to have the correct information. 
B)  $50 for each failure to complete the W-9. 
C)  $500 maximum for failure to complete any W-9 forms as required. 
D) $0, but the taxpayer can be subject to fines and/or imprisonment if caught by an IRS agent. 
A)  $0, it is the responsibility of the payer (requester) to have the correct information. 
B)  $50 for each failure to complete the W-9. 
C)  $500 maximum for failure to complete any W-9 forms as required. 
D) $0, but the taxpayer can be subject to fines and/or imprisonment if caught by an IRS agent.

Question 20

Form 4070 is used by employers to record employees' tips subject to tax withholding and FICA taxes.

Accepted Answer

A) True 
 B)False

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

The credit against "payroll taxes" for providing COBRA premium assistance to eligible individuals is recorded using Form 941-X.

FICA taxes are collected equally from the employee and the employer.

Which of the following statements regarding the lookback period for 2015 is correct?

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

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 2015. How much of his total earnings are subject to self-employment tax for 2015?

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

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?

Danita is married and is paid $4,350 biweekly. She claims three withholding allowances. What amount of federal income tax will be withheld from Danita's gross wages for each payroll period? (Round your answer two decimal places)

Sharon is single and is paid $3,782 biweekly and claims one withholding allowance. What amount of federal income tax will be withheld from Sharon's gross wages for each payroll period?

Ebony earned $86,760 during 2015. She is single, paid semimonthly, and claims one withholding allowance. How much will Ebony's employer withhold from her, in total for each pay period for FICA and federal withholding taxes?

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.

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.

Although the federal unemployment tax is 6.0% of covered wages, employers receive a 5.4% federal credit if they make accurate and timely state unemployment tax deposits.

The Anderson Company started its business on August 3, 2015. 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?

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

Failure to furnish a correct TIN to a requester (payer) can result in a penalty to the payee of:

Form 4070 is used by employers to record employees' tips subject to tax withholding and FICA taxes.

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

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

The credit against "payroll taxes" for providing COBRA premium assistance to eligible individuals is recorded using Form 941-X.

FICA taxes are collected equally from the employee and the employer.

Which of the following statements regarding the lookback period for 2015 is correct?

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

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 2015. How much of his total earnings are subject to self-employment tax for 2015?

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

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?

Danita is married and is paid $4,350 biweekly. She claims three withholding allowances. What amount of federal income tax will be withheld from Danita's gross wages for each payroll period? (Round your answer two decimal places)

Sharon is single and is paid $3,782 biweekly and claims one withholding allowance. What amount of federal income tax will be withheld from Sharon's gross wages for each payroll period?

Ebony earned $86,760 during 2015. She is single, paid semimonthly, and claims one withholding allowance. How much will Ebony's employer withhold from her, in total for each pay period for FICA and federal withholding taxes?

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.

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.

Although the federal unemployment tax is 6.0% of covered wages, employers receive a 5.4% federal credit if they make accurate and timely state unemployment tax deposits.

The Anderson Company started its business on August 3, 2015. 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?

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

Failure to furnish a correct TIN to a requester (payer) can result in a penalty to the payee of:

Form 4070 is used by employers to record employees' tips subject to tax withholding and FICA taxes.

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

The Anderson Company started its business on August 3, 2015. 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?