Question 1

Which one of the following forms must an employer provide to his employee by January 31 of the following year?

Accepted Answer

A) W-3 
B) W-2 
C) W-4 
D) 941 
E) 1040 
A) W-3 
B) W-2 
C) W-4 
D) 941 
E) 1040

Question 2

Which of the following types of income is subject to the self-employment tax?

Accepted Answer

A) Interest income 
B) Gain on sale of real estate 
C) Income from a sole proprietor's law practice 
D) Dividends from stock 
E) None of the above 
A) Interest income 
B) Gain on sale of real estate 
C) Income from a sole proprietor's law practice 
D) Dividends from stock 
E) None of the above

Question 3

Which of the following statements about the FICA tax is not true?

Accepted Answer

A) The FICA tax is composed of two parts, Social Security and Medicare. 
B) Self-employed individuals may elect to pay either FICA taxes or self-employment taxes. 
C) FICA taxes are paid by both the employees and their employers. 
D) The income amount subject to FICA tax has increased significantly over the years. 
E) Wages subject to FICA tax that are received by a self-employed individual reduce the individual's maximum self-employment tax base. 
A) The FICA tax is composed of two parts, Social Security and Medicare. 
B) Self-employed individuals may elect to pay either FICA taxes or self-employment taxes. 
C) FICA taxes are paid by both the employees and their employers. 
D) The income amount subject to FICA tax has increased significantly over the years. 
E) Wages subject to FICA tax that are received by a self-employed individual reduce the individual's maximum self-employment tax base.

Question 4

Mark the correct answer. FICA taxes are:

Accepted Answer

A) 7.65 percent of all earned income with no limitations. 
B) 7.65 percent of earned income up to $150,000. 
C) Paid by the employee and by the employer. 
D) Not subject to cost of living adjustments each year. 
A) 7.65 percent of all earned income with no limitations. 
B) 7.65 percent of earned income up to $150,000. 
C) Paid by the employee and by the employer. 
D) Not subject to cost of living adjustments each year.

Question 5

If a husband and wife both work, they must divide their withholding allowances equally on their W-4 Forms.

Accepted Answer

A) True 
 B)False

Question 6

Janet is single and claims two allowances on her Form W-4. Her salary is $1,800 per month.
a.Use the percentage method to calculate the amount of Janet's withholding for a monthly pay period.
b.Use the withholding tables to determine the amount of Janet's withholding for a monthly pay period.

Accepted Answer

The answer of Janet is single and claims two allowances...

Question 7

Elwin worked at three jobs during 2014. He earned $30,000, $27,000, and $9,000, respectively, from the jobs. What amount can Elwin apply as a credit against his 2014 income tax liability for overpayment of FICA taxes?

Accepted Answer

A) $0 
B) $91.80 
C) $45.90 
D) $37.20 
E) None of the above 
A) $0 
B) $91.80 
C) $45.90 
D) $37.20 
E) None of the above

Question 8

Which of the following forms is used by an employer to report quarterly wages and federal payroll tax withholdings and deposits?

Accepted Answer

A) Form 940 
B) Form 941 
C) Form 1099 
D) Form W-2 
E) None of the above 
A) Form 940 
B) Form 941 
C) Form 1099 
D) Form W-2 
E) None of the above

Question 9

The Foemina Corporation has two employees, Nancy and Penny.
a.If Nancy earns wages of $17,000 for 2014, calculate the total amount of the FICA tax that must be paid:by Nancyby Foemina CorporationTotal
b.If Penny earns wages of $120,000 for 2014, calculate the total amount of the FICA tax that must be paid:by Pennyby Foemina CorporationTotal

Accepted Answer

The answer of The Foemina Corporation has two employees, Nancy...

Question 10

The Pear Corporation pays its employees every 2 weeks. During the look-back period, in each pay period the total withholding and FICA tax (employees' and employer's share) amounted to $750. How often must the Pear Corporation deposit payroll taxes?

Accepted Answer

A) Annually 
B) Monthly 
C) Quarterly 
D) Daily 
E) None of the above 
A) Annually 
B) Monthly 
C) Quarterly 
D) Daily 
E) None of the above

Question 11

Which one of the following payroll tax deposit schedules is not a rule that applies for a class of employers?

Accepted Answer

A) One-day deposit rule 
B) Eight-day deposit rule 
C) Semi-weekly deposit rule 
D) Monthly deposit rule 
E) Yearly deposit rule 
A) One-day deposit rule 
B) Eight-day deposit rule 
C) Semi-weekly deposit rule 
D) Monthly deposit rule 
E) Yearly deposit rule

Question 12

Peter and Joan are married and Joan has self-employment income of $240,000. Peter is retired. How much additional 0.9% Medicare surtax will Peter and Joan owe with their 2014 income tax return? ​

Accepted Answer

A) $360 
B) $2,160 
C) $0 
D) They will receive a $90 refund 
A) $360 
B) $2,160 
C) $0 
D) They will receive a $90 refund

Question 13

The original copy of all W-2 Forms and Form W-3 must be filed with the Social Security Administration by February 28 of the year following the calendar year in which the wages were paid, regardless of the tax year of the employer.

Accepted Answer

A) True 
 B)False

Question 14

When taxpayers overpay FICA taxes, the excess taxes may be claimed as a credit against their tax liability.

Accepted Answer

A) True 
 B)False

Question 15

The FUTA tax is a voluntary unemployment tax which an employer may or may not wish to contribute towards.

Accepted Answer

A) True 
 B)False

Question 16

In 2014, Lew earned wages of $386,724.
a. What is the amount of Social Security tax withheld from his salary?
b. What is the amount of Medicare tax withheld from his salary?

Accepted Answer

a. Social Security maximum of

Question 17

Provide answers to the following questions:
a. What form does an employer use to report wages to an employee?
b. When must the employer give this form to the employee?
c. What form does an employer use to report wages to the Social Security Administration?
d. When must the employer file the form with the Social Security Administration?

Accepted Answer

a. Form W-2
b. In general, the employer

Question 18

Redford's salary was $124,000 in 2014. What would his total combined FICA tax (OASDI & Medicare) withheld from his salary be for the year?

Accepted Answer

A) $8,951 
B) $9,052 
C) $9,486 
D) $10,000 
E) None of the above is correct 
A) $8,951 
B) $9,052 
C) $9,486 
D) $10,000 
E) None of the above is correct

Question 19

For 2014, the maximum base amount for computing the Medicare portion of the self-employment tax is $135,000.

Accepted Answer

A) True 
 B)False

Question 20

Marty earned $5,000 in interest income from the Honey Springs Bank. She failed to notify the bank that she was not subject to backup withholding.
a. If Marty's taxable income puts her in the 25 percent bracket, how much would Honey Springs Bank withhold on the $5,000 of interest earnings?
b. If Marty's taxable income puts her in the 15 percent bracket, how much would Honey Springs Bank withhold on the $5,000 of interest earnings?

Accepted Answer

a. $1,400. The bank should withhold at t

Which one of the following forms must an employer provide to his employee by January 31 of the following year?

Which of the following types of income is subject to the self-employment tax?

Which of the following statements about the FICA tax is not true?

Mark the correct answer. FICA taxes are:

If a husband and wife both work, they must divide their withholding allowances equally on their W-4 Forms.

Janet is single and claims two allowances on her Form W-4. Her salary is $1,800 per month. a.Use the percentage method to calculate the amount of Janet's withholding for a monthly pay period. b.Use the withholding tables to determine the amount of Janet's withholding for a monthly pay period.

Elwin worked at three jobs during 2014. He earned $30,000, $27,000, and $9,000, respectively, from the jobs. What amount can Elwin apply as a credit against his 2014 income tax liability for overpayment of FICA taxes?

Which of the following forms is used by an employer to report quarterly wages and federal payroll tax withholdings and deposits?

The Pear Corporation pays its employees every 2 weeks. During the look-back period, in each pay period the total withholding and FICA tax (employees' and employer's share) amounted to $750. How often must the Pear Corporation deposit payroll taxes?

Which one of the following payroll tax deposit schedules is not a rule that applies for a class of employers?

Peter and Joan are married and Joan has self-employment income of $240,000. Peter is retired. How much additional 0.9% Medicare surtax will Peter and Joan owe with their 2014 income tax return?

The original copy of all W-2 Forms and Form W-3 must be filed with the Social Security Administration by February 28 of the year following the calendar year in which the wages were paid, regardless of the tax year of the employer.

When taxpayers overpay FICA taxes, the excess taxes may be claimed as a credit against their tax liability.

The FUTA tax is a voluntary unemployment tax which an employer may or may not wish to contribute towards.

In 2014, Lew earned wages of $386,724. a. What is the amount of Social Security tax withheld from his salary? b. What is the amount of Medicare tax withheld from his salary?

Redford's salary was $124,000 in 2014. What would his total combined FICA tax (OASDI & Medicare) withheld from his salary be for the year?

For 2014, the maximum base amount for computing the Medicare portion of the self-employment tax is $135,000.

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

Which one of the following forms must an employer provide to his employee by January 31 of the following year?

Which of the following types of income is subject to the self-employment tax?

Which of the following statements about the FICA tax is not true?

Mark the correct answer. FICA taxes are:

If a husband and wife both work, they must divide their withholding allowances equally on their W-4 Forms.

Janet is single and claims two allowances on her Form W-4. Her salary is $1,800 per month. a.Use the percentage method to calculate the amount of Janet's withholding for a monthly pay period. b.Use the withholding tables to determine the amount of Janet's withholding for a monthly pay period.

Elwin worked at three jobs during 2014. He earned $30,000, $27,000, and $9,000, respectively, from the jobs. What amount can Elwin apply as a credit against his 2014 income tax liability for overpayment of FICA taxes?

Which of the following forms is used by an employer to report quarterly wages and federal payroll tax withholdings and deposits?

The Pear Corporation pays its employees every 2 weeks. During the look-back period, in each pay period the total withholding and FICA tax (employees' and employer's share) amounted to $750. How often must the Pear Corporation deposit payroll taxes?

Which one of the following payroll tax deposit schedules is not a rule that applies for a class of employers?

Peter and Joan are married and Joan has self-employment income of $240,000. Peter is retired. How much additional 0.9% Medicare surtax will Peter and Joan owe with their 2014 income tax return? ​

The original copy of all W-2 Forms and Form W-3 must be filed with the Social Security Administration by February 28 of the year following the calendar year in which the wages were paid, regardless of the tax year of the employer.

When taxpayers overpay FICA taxes, the excess taxes may be claimed as a credit against their tax liability.

The FUTA tax is a voluntary unemployment tax which an employer may or may not wish to contribute towards.

In 2014, Lew earned wages of $386,724. a. What is the amount of Social Security tax withheld from his salary? b. What is the amount of Medicare tax withheld from his salary?

Redford's salary was $124,000 in 2014. What would his total combined FICA tax (OASDI & Medicare) withheld from his salary be for the year?

For 2014, the maximum base amount for computing the Medicare portion of the self-employment tax is $135,000.

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

Peter and Joan are married and Joan has self-employment income of $240,000. Peter is retired. How much additional 0.9% Medicare surtax will Peter and Joan owe with their 2014 income tax return?