Question 1

Form W-4 is used by employees to indicate the filing status and number of withholding allowances claimed on Form 1040.

Accepted Answer

A) True 
 B)False

Question 2

Generally, an employer must withhold 28% of certain taxable payments if the payee fails to furnish the employer with a correct taxpayer identification number.

Accepted Answer

A) True 
 B)False

Question 3

Jan hired Mike to dog sit for her beloved but lonely pooch, Barney (while she worked) starting on January 4, 2015 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 4

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

Question 5

Unless specifically excluded, what is the penalty for sending a required tax payment directly to the Internal Revenue Service?

Accepted Answer

A)  2%. 
B)  5%. 
C)  10%. 
D) 15%. 
A)  2%. 
B)  5%. 
C)  10%. 
D) 15%.

Question 6

Alexandra earned $200 in tips in June. When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

Accepted Answer

A)  June 30. 
B)  July 10. 
C)  July 31. 
D) Alexandra is not under any obligation to inform her employer of her tips earned in any one month. 
A)  June 30. 
B)  July 10. 
C)  July 31. 
D) Alexandra is not under any obligation to inform her employer of her tips earned in any one month.

Question 7

An employer with 250 or more employees uses which form to file W-2s electronically?

Accepted Answer

A)  Form 8109-B. 
B)  Form 4419. 
C)  Form 4070. 
D) Form 1040-ES. 
A)  Form 8109-B. 
B)  Form 4419. 
C)  Form 4070. 
D) Form 1040-ES.

Question 8

The payroll period for a semiweekly schedule depositor ends on and is paid on Friday, July 10, 2015. The employer must deposit the federal taxes withheld for this pay period on or before:

Accepted Answer

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

Question 9

Ladaris has two jobs. She earned $120,000 from her first job and $10,000 from her second job. How much total FICA taxes will Ladaris have withheld from her wages from working two jobs?

Accepted Answer

A)  $9,065.25. 
B)  $9,830.25. 
C)  $9,852.00. 
D) $9,945.00. 
A)  $9,065.25. 
B)  $9,830.25. 
C)  $9,852.00. 
D) $9,945.00.

Question 10

Ben has 2 jobs and both employers withhold FICA taxes. From his first job, Ben earned $85,034 and from his second job, he earned $34,496. How much can Ben claim as additional payment on his Form 1040 as excess social security tax paid in 2015?

Accepted Answer

A)  $0. 
B)  $32.86. 
C)  $63.86. 
D) $94.86. 
A)  $0. 
B)  $32.86. 
C)  $63.86. 
D) $94.86.

Question 11

Lynita has two jobs and earned $92,316 from her first job and $26,345 from her second job. How much total FICA taxes will Lynita have withheld from her wages from working two jobs?

Accepted Answer

A)  $9,027.00. 
B)  $9,065.25. 
C)  $9,067.58. 
D) $9,077.57. 
A)  $9,027.00. 
B)  $9,065.25. 
C)  $9,067.58. 
D) $9,077.57.

Question 12

Marci has two jobs and both employers withheld FICA tax. From her first job, she earned $100,600 and from her second job she earned $18,300. How much can Marci claim on her Form 1040 as excess social security tax paid in 2015?

Accepted Answer

A)  $0. 
B)  $24.80. 
C)  $55.80. 
D) $80.60. 
A)  $0. 
B)  $24.80. 
C)  $55.80. 
D) $80.60.

Question 13

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 14

The amount of federal income taxes withheld should approximate the tax liability the employee will owe to the federal government.

Accepted Answer

A) True 
 B)False

Question 15

The federal income and social security taxes reported on a W-2 form are the amounts used to determine if a taxpayer will receive a refund on a Form 1040.

Accepted Answer

A) True 
 B)False

Question 16

Supplemental wage payments include all the following except:

Accepted Answer

A)  Commissions. 
B)  Bonuses. 
C)  Expenses paid under an accountable plan. 
D) Taxable fringe benefits. 
A)  Commissions. 
B)  Bonuses. 
C)  Expenses paid under an accountable plan. 
D) Taxable fringe benefits.

Question 17

Safe harbor is a term used to describe a provision in the Internal Revenue Code that protects taxpayers from penalty under certain situations.

Accepted Answer

A) True 
 B)False

Question 18

A taxpayer with an AGI of $300,000 for 2015 pays estimated taxes. The taxpayer can avoid an underpayment penalty by paying:

Accepted Answer

A)  At least 90% of his/her 2015 tax liability if his/her 2014 adjusted gross income was less than $200,000 regardless of filing status. 
B)  At least 90% of his/her 2015 tax liability ratably over four quarterly payments. 
C)  At least 100% of his/her 2015 tax liability ratably over four quarterly payments. 
D) At least 110% of his/her 2015 tax liability ratably over four quarterly payments. 
A)  At least 90% of his/her 2015 tax liability if his/her 2014 adjusted gross income was less than $200,000 regardless of filing status. 
B)  At least 90% of his/her 2015 tax liability ratably over four quarterly payments. 
C)  At least 100% of his/her 2015 tax liability ratably over four quarterly payments. 
D) At least 110% of his/her 2015 tax liability ratably over four quarterly payments.

Question 19

An employee who works for multiple employers will likely be under-withheld for federal income tax purposes and can owe additional taxes when filing his/her return.

Accepted Answer

A) True 
 B)False

Question 20

An employer must send Copy A of Form W-2 with the W-3 transmittal form for each employee paid in 2014 to the Social Security Administration no later than:

Accepted Answer

A)  January 29, 2016. 
B)  February 1, 2016. 
C)  February 29, 2016. 
D) March 1, 2016. 
A)  January 29, 2016. 
B)  February 1, 2016. 
C)  February 29, 2016. 
D) March 1, 2016.

Form W-4 is used by employees to indicate the filing status and number of withholding allowances claimed on Form 1040.

Generally, an employer must withhold 28% of certain taxable payments if the payee fails to furnish the employer with a correct taxpayer identification number.

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

Unless specifically excluded, what is the penalty for sending a required tax payment directly to the Internal Revenue Service?

Alexandra earned $200 in tips in June. When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

An employer with 250 or more employees uses which form to file W-2s electronically?

The payroll period for a semiweekly schedule depositor ends on and is paid on Friday, July 10, 2015. The employer must deposit the federal taxes withheld for this pay period on or before:

Ladaris has two jobs. She earned $120,000 from her first job and $10,000 from her second job. How much total FICA taxes will Ladaris have withheld from her wages from working two jobs?

Ben has 2 jobs and both employers withhold FICA taxes. From his first job, Ben earned $85,034 and from his second job, he earned $34,496. How much can Ben claim as additional payment on his Form 1040 as excess social security tax paid in 2015?

Lynita has two jobs and earned $92,316 from her first job and $26,345 from her second job. How much total FICA taxes will Lynita have withheld from her wages from working two jobs?

Marci has two jobs and both employers withheld FICA tax. From her first job, she earned $100,600 and from her second job she earned $18,300. How much can Marci claim on her Form 1040 as excess social security tax paid in 2015?

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

The amount of federal income taxes withheld should approximate the tax liability the employee will owe to the federal government.

The federal income and social security taxes reported on a W-2 form are the amounts used to determine if a taxpayer will receive a refund on a Form 1040.

Supplemental wage payments include all the following except:

Safe harbor is a term used to describe a provision in the Internal Revenue Code that protects taxpayers from penalty under certain situations.

A taxpayer with an AGI of $300,000 for 2015 pays estimated taxes. The taxpayer can avoid an underpayment penalty by paying:

An employee who works for multiple employers will likely be under-withheld for federal income tax purposes and can owe additional taxes when filing his/her return.

An employer must send Copy A of Form W-2 with the W-3 transmittal form for each employee paid in 2014 to the Social Security Administration no later than:

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

Form W-4 is used by employees to indicate the filing status and number of withholding allowances claimed on Form 1040.

Generally, an employer must withhold 28% of certain taxable payments if the payee fails to furnish the employer with a correct taxpayer identification number.

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

Unless specifically excluded, what is the penalty for sending a required tax payment directly to the Internal Revenue Service?

Alexandra earned $200 in tips in June. When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

An employer with 250 or more employees uses which form to file W-2s electronically?

The payroll period for a semiweekly schedule depositor ends on and is paid on Friday, July 10, 2015. The employer must deposit the federal taxes withheld for this pay period on or before:

Ladaris has two jobs. She earned $120,000 from her first job and $10,000 from her second job. How much total FICA taxes will Ladaris have withheld from her wages from working two jobs?

Ben has 2 jobs and both employers withhold FICA taxes. From his first job, Ben earned $85,034 and from his second job, he earned $34,496. How much can Ben claim as additional payment on his Form 1040 as excess social security tax paid in 2015?

Lynita has two jobs and earned $92,316 from her first job and $26,345 from her second job. How much total FICA taxes will Lynita have withheld from her wages from working two jobs?

Marci has two jobs and both employers withheld FICA tax. From her first job, she earned $100,600 and from her second job she earned $18,300. How much can Marci claim on her Form 1040 as excess social security tax paid in 2015?

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

The amount of federal income taxes withheld should approximate the tax liability the employee will owe to the federal government.

The federal income and social security taxes reported on a W-2 form are the amounts used to determine if a taxpayer will receive a refund on a Form 1040.

Supplemental wage payments include all the following except:

Safe harbor is a term used to describe a provision in the Internal Revenue Code that protects taxpayers from penalty under certain situations.

A taxpayer with an AGI of $300,000 for 2015 pays estimated taxes. The taxpayer can avoid an underpayment penalty by paying:

An employee who works for multiple employers will likely be under-withheld for federal income tax purposes and can owe additional taxes when filing his/her return.

An employer must send Copy A of Form W-2 with the W-3 transmittal form for each employee paid in 2014 to the Social Security Administration no later than:

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