Question 1

If an employee does not complete a Form W-4, the employer must withhold tax as if the employee were single with no exemptions.

Accepted Answer

A) True 
 B)False  True

Question 2

George has four employees who earned $75,000, $27,000, $2,100, and $6,200 during 2014, respectively. He paid 5.4 percent for state unemployment tax. How much FUTA tax will George owe for the four employees?

Accepted Answer

A) $133.80 
B) $882.40 
C) $321.60 
D) $224.00 
E) $163.70 
A) $133.80 
B) $882.40 
C) $321.60 
D) $224.00 
E) $163.70 A

Question 3

Employer deposits of withheld taxes may be made to any bank.

Accepted Answer

A) True 
 B)False  False

Question 4

Oliver has two employees who earned the following amounts during 2014: If Oliver timely pays 5.4 percent for state unemployment tax, what is the amount of his 2014 FUTA after the state tax credit?

Accepted Answer

A) $0 
B) $72 
C) $112 
D) $176 
E) None of the above 
A) $0 
B) $72 
C) $112 
D) $176 
E) None of the above

Question 5

In 2014, Willow Corporation had three employees. Two of the employees worked full-time and earned salaries of $25,000 each. The third employee worked only part-time and earned $3,000. The employer timely paid state unemployment tax equal to 5.4 percent of each employee's wages up to $7,000. How much FUTA tax is due from Willow Corporation for 2014, after the credit for state unemployment taxes?

Accepted Answer

A) $0 
B) $102 
C) $168 
D) $918 
E) None of the above 
A) $0 
B) $102 
C) $168 
D) $918 
E) None of the above

Question 6

Which of the following forms should be used by a company to report a payment of $1,500 to a computer consultant who is not an employee of the company?

Accepted Answer

A) Form 1099-INT 
B) Form W-4 
C) Form W-2 
D) Form 1099-DIV 
E) Form 1099-MISC 
A) Form 1099-INT 
B) Form W-4 
C) Form W-2 
D) Form 1099-DIV 
E) Form 1099-MISC

Question 7

If taxpayers fail to provide their bank with an identification number, they are subject to backup withholding on interest payments.

Accepted Answer

A) True 
 B)False

Question 8

Gambling winnings must be reported to the IRS, but withholding of taxes on winnings is never required.

Accepted Answer

A) True 
 B)False

Question 9

For 2014, the Social Security portion of the FICA tax is imposed at a rate of:

Accepted Answer

A) 6.2 percent for the employee and 7.65 percent for the employer. 
B) 6.2 percent for only the employer. 
C) 6.2 percent for only the employee. 
D) 6.2 percent for the employee and 6.2 percent for the employer. 
E) None of the above. 
A) 6.2 percent for the employee and 7.65 percent for the employer. 
B) 6.2 percent for only the employer. 
C) 6.2 percent for only the employee. 
D) 6.2 percent for the employee and 6.2 percent for the employer. 
E) None of the above.

Question 10

Household employers are not required to pay FICA taxes on cash payments of less than $1,900 paid to any household employee in a calendar year.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following taxpayers are not required to make estimated payments?

Accepted Answer

A) A car mechanic who is self-employed and earns $50,000 a year. 
B) A wealthy individual whose earnings are from corporate dividends. 
C) An employee who works at a local department store with appropriate withholding and no other income. 
D) All of the above must make estimated payments. 
A) A car mechanic who is self-employed and earns $50,000 a year. 
B) A wealthy individual whose earnings are from corporate dividends. 
C) An employee who works at a local department store with appropriate withholding and no other income. 
D) All of the above must make estimated payments.

Question 12

Mark the incorrect answer. Estimated income tax payments:

Accepted Answer

A) Need not be filed if the estimated tax, after subtracting withholding, can reasonably be expected to be more than $1,000. 
B) If inadequate, may result in nondeductible penalties. 
C) May be based on the amount of the tax liability for the prior year. 
D) Are made in four installments on April 15, June 15, and September 15 of the tax year and on January 15 of the following year. 
A) Need not be filed if the estimated tax, after subtracting withholding, can reasonably be expected to be more than $1,000. 
B) If inadequate, may result in nondeductible penalties. 
C) May be based on the amount of the tax liability for the prior year. 
D) Are made in four installments on April 15, June 15, and September 15 of the tax year and on January 15 of the following year.

Question 13

Gordon is 60 years old and Mary is 55 years old. They are married with three dependent children over age 17, and Gordon has one job. Assuming that Mary is unemployed, how many allowances should Gordon claim on his Form W-4, assuming no extra allowances for deductions or adjustments?

Accepted Answer

A) Five 
B) Six 
C) Seven 
D) Eight 
E) Nine 
A) Five 
B) Six 
C) Seven 
D) Eight 
E) Nine

Question 14

In determining an employee's FICA tax to be withheld, the maximum amount of wages subject to FICA must be reduced by the taxpayer's self-employment earnings.

Accepted Answer

A) True 
 B)False

Question 15

Employers must provide employees with their Form W-2s by February 15th of the year following the calendar year of payment of the wages.

Accepted Answer

A) True 
 B)False

Question 16

If an individual taxpayer discovers that his or her original estimate for estimated tax payments was inaccurate, the taxpayer should continue to make payments based on the original estimate and pay any additional amount or request any refund when the tax return is filed.

Accepted Answer

A) True 
 B)False

Question 17

Taxpayers with large amounts of deductions may claim extra withholding allowances on their Form W-4s.

Accepted Answer

A) True 
 B)False

Question 18

For 2014, the maximum base for the Social Security portion of the FICA tax is:

Accepted Answer

A) $135,000 
B) $117,000 
C) $87,900 
D) $84,000 
E) None of the above 
A) $135,000 
B) $117,000 
C) $87,900 
D) $84,000 
E) None of the above

Question 19

An employee is reimbursed for travel and other ordinary and necessary expenses. Under what circumstances would income tax be withheld from the employee on these amounts?

Accepted Answer

Reimbursements of travel and other emplo

Question 20

When required, gambling winnings are reported by the gambling establishment on Form 1099-MISC.

Accepted Answer

A) True 
 B)False

If an employee does not complete a Form W-4, the employer must withhold tax as if the employee were single with no exemptions.

George has four employees who earned $75,000, $27,000, $2,100, and $6,200 during 2014, respectively. He paid 5.4 percent for state unemployment tax. How much FUTA tax will George owe for the four employees?

Employer deposits of withheld taxes may be made to any bank.

Oliver has two employees who earned the following amounts during 2014: If Oliver timely pays 5.4 percent for state unemployment tax, what is the amount of his 2014 FUTA after the state tax credit?

Which of the following forms should be used by a company to report a payment of $1,500 to a computer consultant who is not an employee of the company?

If taxpayers fail to provide their bank with an identification number, they are subject to backup withholding on interest payments.

Gambling winnings must be reported to the IRS, but withholding of taxes on winnings is never required.

For 2014, the Social Security portion of the FICA tax is imposed at a rate of:

Household employers are not required to pay FICA taxes on cash payments of less than $1,900 paid to any household employee in a calendar year.

Which of the following taxpayers are not required to make estimated payments?

Mark the incorrect answer. Estimated income tax payments:

Gordon is 60 years old and Mary is 55 years old. They are married with three dependent children over age 17, and Gordon has one job. Assuming that Mary is unemployed, how many allowances should Gordon claim on his Form W-4, assuming no extra allowances for deductions or adjustments?

In determining an employee's FICA tax to be withheld, the maximum amount of wages subject to FICA must be reduced by the taxpayer's self-employment earnings.

Employers must provide employees with their Form W-2s by February 15th of the year following the calendar year of payment of the wages.

If an individual taxpayer discovers that his or her original estimate for estimated tax payments was inaccurate, the taxpayer should continue to make payments based on the original estimate and pay any additional amount or request any refund when the tax return is filed.

Taxpayers with large amounts of deductions may claim extra withholding allowances on their Form W-4s.

For 2014, the maximum base for the Social Security portion of the FICA tax is:

An employee is reimbursed for travel and other ordinary and necessary expenses. Under what circumstances would income tax be withheld from the employee on these amounts?

When required, gambling winnings are reported by the gambling establishment on Form 1099-MISC.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 9: Withholding, Estimated Payments, and Payroll Taxes

If an employee does not complete a Form W-4, the employer must withhold tax as if the employee were single with no exemptions.

George has four employees who earned $75,000, $27,000, $2,100, and $6,200 during 2014, respectively. He paid 5.4 percent for state unemployment tax. How much FUTA tax will George owe for the four employees?

Employer deposits of withheld taxes may be made to any bank.

Oliver has two employees who earned the following amounts during 2014: If Oliver timely pays 5.4 percent for state unemployment tax, what is the amount of his 2014 FUTA after the state tax credit?

Which of the following forms should be used by a company to report a payment of $1,500 to a computer consultant who is not an employee of the company?

If taxpayers fail to provide their bank with an identification number, they are subject to backup withholding on interest payments.

Gambling winnings must be reported to the IRS, but withholding of taxes on winnings is never required.

For 2014, the Social Security portion of the FICA tax is imposed at a rate of:

Household employers are not required to pay FICA taxes on cash payments of less than $1,900 paid to any household employee in a calendar year.

Which of the following taxpayers are not required to make estimated payments?

Mark the incorrect answer. Estimated income tax payments:

Gordon is 60 years old and Mary is 55 years old. They are married with three dependent children over age 17, and Gordon has one job. Assuming that Mary is unemployed, how many allowances should Gordon claim on his Form W-4, assuming no extra allowances for deductions or adjustments?

In determining an employee's FICA tax to be withheld, the maximum amount of wages subject to FICA must be reduced by the taxpayer's self-employment earnings.

Employers must provide employees with their Form W-2s by February 15th of the year following the calendar year of payment of the wages.

If an individual taxpayer discovers that his or her original estimate for estimated tax payments was inaccurate, the taxpayer should continue to make payments based on the original estimate and pay any additional amount or request any refund when the tax return is filed.

Taxpayers with large amounts of deductions may claim extra withholding allowances on their Form W-4s.

For 2014, the maximum base for the Social Security portion of the FICA tax is:

An employee is reimbursed for travel and other ordinary and necessary expenses. Under what circumstances would income tax be withheld from the employee on these amounts?

When required, gambling winnings are reported by the gambling establishment on Form 1099-MISC.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters