Exam 9: Withholding Estimated Payments and Payroll Taxes

Mike is a single taxpayer.For the payroll period of November 2017,he is paid wages of $3,400,monthly.Mike claims three allowances on his Form W-4. a.Use the percentage method to calculate the amount of Mike's withholding for a monthly pay period. b.Use the withholding tables to determine the amount of Mike's withholding for the same period.

(Essay)

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Question 41

Choose the incorrect answer.In completing a Form W-4,employees may claim extra allowances:

(Multiple Choice)

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Question 42

For each of the following payments,indicate the form (Form W-2,W-4,W-2G,1099-B,1099-DIV,1099-INT,1099-MISC,or 1099-R)that should be used to report the payment. a.Dividends from a mutual fund b.Las Vegas gambling winnings c.Interest paid by a bank d.Payment of salary and commissions to an employee e.Distribution from an IRA account

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Question 43

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

(True/False)

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Question 44

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

(True/False)

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Question 45

Emily is a self-employed attorney. a. Assuming that Emily earns $20,000 from her practice,calculate the total amount of her self-employment tax liability for 2017. b. Assuming that Emily earns $145,000 from her practice,calculate the total amount of her self-employment tax liability for 2017.

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Question 46

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?

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Question 47

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

(True/False)

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Question 48

Choose the correct answer.Self-employment taxes:

(Multiple Choice)

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Question 49

Individual quarterly estimated tax payments are filed with Form 1040-ES.

(True/False)

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Question 50

Form 1099-DIV is an information return used to show the payment of:

(Multiple Choice)

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Question 51

The FUTA tax is paid by:

(Multiple Choice)

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Question 52

Tom had net earnings of $80,000 from the plant nursery he owns.What is his liability for self-employment taxes on his earnings?

(Essay)

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Question 53

Redford's salary was $129,000 in 2017.What would his total combined FICA tax (Social Security & Medicare)withheld from his salary be for the year?

(Multiple Choice)

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Question 54

The Wash Your Paws Self-Service Dog Wash,a California business,had two employees during the year.Lindsey worked from January through March 15 and earned $2,750.Avery worked for the whole year and earned $20,000.The State of California assesses unemployment tax at the rate of 5.4 percent.Calculate the total FUTA tax after the credit for the state unemployment tax.

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Question 55

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?

(Multiple Choice)

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Question 56

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?

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Question 57

The Foemina Corporation has two employees,Nancy and Penny. a.If Nancy earns wages of $17,000 for 2017,calculate the total amount of the FICA tax that must be paid: by Nancy by Foemina Corporation Total b.If Penny earns wages of $130,000 for 2017,calculate the total amount of the FICA tax that must be paid: by Penny by Foemina Corporation Total

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Question 58

The original copy of all Forms W-2 and Form W-3 must be filed with the Social Security Administration by January 31 of the year following the calendar year in which the wages were paid,regardless of the tax year of the employer.

(True/False)

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Question 59

Which of the following items may be subject to the self-employment tax?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 82

Choose the incorrect answer.In completing a Form W-4,employees may claim extra allowances:

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

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

Emily is a self-employed attorney. a. Assuming that Emily earns $20,000 from her practice,calculate the total amount of her self-employment tax liability for 2017. b. Assuming that Emily earns $145,000 from her practice,calculate the total amount of her self-employment tax liability for 2017.

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

Choose the correct answer.Self-employment taxes:

Individual quarterly estimated tax payments are filed with Form 1040-ES.

Form 1099-DIV is an information return used to show the payment of:

The FUTA tax is paid by:

Tom had net earnings of $80,000 from the plant nursery he owns.What is his liability for self-employment taxes on his earnings?

Redford's salary was $129,000 in 2017.What would his total combined FICA tax (Social Security & Medicare)withheld from his salary be for the year?

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?

The original copy of all Forms W-2 and Form W-3 must be filed with the Social Security Administration by January 31 of the year following the calendar year in which the wages were paid,regardless of the tax year of the employer.

Which of the following items may be subject to the self-employment tax?

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

Choose the incorrect answer.In completing a Form W-4,employees may claim extra allowances:

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

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

Emily is a self-employed attorney. a.​ Assuming that Emily earns $20,000 from her practice,calculate the total amount of her self-employment tax liability for 2017. b.​ Assuming that Emily earns $145,000 from her practice,calculate the total amount of her self-employment tax liability for 2017.

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

Choose the correct answer.Self-employment taxes:

Individual quarterly estimated tax payments are filed with Form 1040-ES.

Form 1099-DIV is an information return used to show the payment of:

The FUTA tax is paid by:

Tom had net earnings of $80,000 from the plant nursery he owns.What is his liability for self-employment taxes on his earnings?

Redford's salary was $129,000 in 2017.What would his total combined FICA tax (Social Security & Medicare)withheld from his salary be for the year?

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?

The original copy of all Forms W-2 and Form W-3 must be filed with the Social Security Administration by January 31 of the year following the calendar year in which the wages were paid,regardless of the tax year of the employer.

Which of the following items may be subject to the self-employment tax?

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

Emily is a self-employed attorney. a. Assuming that Emily earns $20,000 from her practice,calculate the total amount of her self-employment tax liability for 2017. b. Assuming that Emily earns $145,000 from her practice,calculate the total amount of her self-employment tax liability for 2017.