Question 1

An aspect of the interstate reciprocal arrangement concerns:

Accepted Answer

A)  the status of Americans working overseas. 
B)  the taxability of dismissal payments. 
C)  the determination of an employer's experience rating. 
D)  the transfer of an employee from one state to another during the year. 
E)  none of the above.

Question 2

Even if a state repays its Title XII advances, all employers in that state are subject to a credit reduction in the year of the advance.

Accepted Answer

A) True 
 B)False

Question 3

Services performed by a child under the age of 21 for a parent-employer are excluded from FUTA coverage.

Accepted Answer

A) True 
 B)False

Question 4

In order to avoid a credit reduction for Title XII advances, a state must repay the loans by:

Accepted Answer

A)  the end of the year of the loans. 
B)  the end of the year the credit reduction is scheduled to take effect. 
C)  the end of the third year after the year of the loans. 
D)  November 10 of the year the credit reduction is scheduled to take effect. 
E)  June 30 of the year after the loans.

Question 5

A traveling salesperson who solicits and transmits to the principal orders for merchandise for resale is considered an employee under FUTA.

Accepted Answer

A) True 
 B)False

Question 6

Retirement pay is taxable wages for FUTA purposes.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a factor considered in determining coverage of interstate employees?

Accepted Answer

A)  Location of base of operations 
B)  Place where work is localized 
C)  Location of company's payroll department 
D)  Location of employee's residence 
E)  Location of place from which operations are controlled

Question 8

If an employer pays unemployment taxes to two states, it will have the same SUTA tax rate in both states.

Accepted Answer

A) True 
 B)False

Question 9

The Social Security Act ordered every state to set up an unemployment compensation program.

Accepted Answer

A) True 
 B)False

Question 10

If an employer's quarterly tax liability is $525, it must be paid on or before the last day of the month following the end of the quarter.

Accepted Answer

A) True 
 B)False

Exam 5: Unemployment Compensation Taxes

An aspect of the interstate reciprocal arrangement concerns:

Even if a state repays its Title XII advances, all employers in that state are subject to a credit reduction in the year of the advance.

Services performed by a child under the age of 21 for a parent-employer are excluded from FUTA coverage.

In order to avoid a credit reduction for Title XII advances, a state must repay the loans by:

A traveling salesperson who solicits and transmits to the principal orders for merchandise for resale is considered an employee under FUTA.

Retirement pay is taxable wages for FUTA purposes.

Which of the following is not a factor considered in determining coverage of interstate employees?

If an employer pays unemployment taxes to two states, it will have the same SUTA tax rate in both states.

The Social Security Act ordered every state to set up an unemployment compensation program.

If an employer's quarterly tax liability is $525, it must be paid on or before the last day of the month following the end of the quarter.