Question 1

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

The answer of Provide answers to the following questions:
a. What...

Question 2

In 2019, the maximum amount of wages subject to the Social Security portion of the FICA tax is unlimited.

Accepted Answer

A) True 
 B)False

Question 3

In 2019, 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 $4,000. 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 2019, after the credit for state unemployment taxes?

Accepted Answer

A) $0 
B) $102 
C) $108 
D) $918 
E) $1,134

Question 4

Dividends paid to a shareholder by a corporation should be reported on which of the following forms?

Accepted Answer

A) 1099-INT 
B) 1099-DIV 
C) 1099-MISC 
D) 1099-R 
E) None of these

Question 5

George has four employees who earned $75,000, $27,000, $2,100, and $6,200 during 2019, 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

Question 6

Which of the following forms should be used by a company to report a 2019 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

Question 7

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.
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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

The answer of Marty earned $5,000 in interest income from...

Question 8

The FUTA tax for 2019 is based on 6.2 percent of each employee's wages up to $10,000.

Accepted Answer

A) True 
 B)False

Question 9

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 these

Question 10

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 that pays wages of about $73,000. Assuming that Mary is unemployed, how many allowances should Gordon claim on his 2019 Form W-4, assuming no extra allowances for deductions or adjustments?

Accepted Answer

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

Question 11

Under a defined contribution plan, the contribution made on behalf of the employee is determined using a formula dependent on the employee's current compensation.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true with regard to the reimbursement of employee business expenses?

Accepted Answer

A) Reimbursements of ordinary and necessary expenses are subject to federal income tax withholding. 
B) Excess reimbursements of ordinary and necessary expenses are never subject to withholding. 
C) Reimbursements received by an employee under a plan which contains a requirement to return excess amounts, and the employee does so on a timely basis, are excluded from the definition of wages subject to withholding. 
D) Provided that reimbursements are received by an employee under a plan which requires the employee to substantiate the expenses to his employer, the amounts are excluded from the definition of wages subject to withholding, without regard to whether the employee actually substantiates the expenditures. 
E) All of these are true statements.

Question 13

What is the purpose of backup withholding?

Accepted Answer

The answer of What is the purpose of backup withholding?...

Question 14

Which of the following amounts paid by an employer to an employee is not subject to withholding?

Accepted Answer

A) Commissions 
B) Travel expense reimbursements from an accountable plan 
C) Salary 
D) Bonus 
E) All of these are subject to withholding

Exam 9: Payroll, Estimated Payments and Retirement Plans

In 2019, the maximum amount of wages subject to the Social Security portion of the FICA tax is unlimited.

Dividends paid to a shareholder by a corporation should be reported on which of the following forms?

George has four employees who earned $75,000, $27,000, $2,100, and $6,200 during 2019, respectively. He paid 5.4 percent for state unemployment tax. How much FUTA tax will George owe for the four employees?

Which of the following forms should be used by a company to report a 2019 payment of $1,500 to a computer consultant who is not an employee of the company?

The FUTA tax for 2019 is based on 6.2 percent of each employee's wages up to $10,000.

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

Under a defined contribution plan, the contribution made on behalf of the employee is determined using a formula dependent on the employee's current compensation.

Which of the following statements is true with regard to the reimbursement of employee business expenses?

What is the purpose of backup withholding?

Which of the following amounts paid by an employer to an employee is not subject to withholding?