Question 1

FUTA tax rates vary from state to state.

Accepted Answer

A) True 
 B)False

Question 2

Johnny's Tavern had 16 employees and total annual wages of $376,948 during the previous year.All employees earned more than $7,000 during the year.What is Johnny's Tavern's FUTA tax liability?

Accepted Answer

A)  $22,616.88 
B)  $1,589.69 
C)  $7,000.00 
D)  $672.00

Question 3

Cralic Company has 12 employees and operates in Texas.The Form 940 for the previous year contained the following information: 
What amount should be entered on line 5? (Assume that all employees had exceeded the FUTA wage base. )

Accepted Answer

A)  $84,000 
B)  $1,535.91 
C)  $171,984.29 
D)  $1,031.91

Question 4

John works for Heinlein Hillclimbers in Wyoming,where he earns $26,500 annually.He contributes $150 per month to his 401(k),of which his employer matches half of his contribution.Heinlein Hillclimbers contributes $150 per month to his health insurance,$30 per month to his life insurance,and $50 per month to his AD&D policy.He receives a 2% profit-sharing bonus at the end of each year and $5,250 in tuition reimbursement.Heinlein pays employer-only taxes and insurance that comprises an additional 18% of John's annual salary.What is John's total annual compensation?

Accepted Answer

A)  $26,500.00 
B)  $39,675.25 
C)  $40,710.00 
D)  $39,633.25

Question 5

Kohlmeier Industries had $87,950 of annual payroll taxes during the lookback period.The firm pays its employees biweekly on Wednesdays.Assuming that no payday has a tax liability in excess of $100,000,when are the payroll tax deposits due?

Accepted Answer

A)  By the end of the current month 
B)  Within two weeks of the pay date 
C)  By Friday of the current week 
D)  By Wednesday of the following week

Question 6

The number of employees contained in the different departments of a company is known as the:

Accepted Answer

A)  Employee concentration. 
B)  Department classification. 
C)  Labor distribution. 
D)  Company division.

Question 7

Cralic Company has 12 employees and operates in Texas.The Form 940 for the previous year contained the following information: 
What amount should be entered on line 8?

Accepted Answer

A)  $504.00 
B)  $1,008.00 
C)  $1,535.91 
D)  $1,031.91

Question 8

Form W-3 is the report of wages issued to independent contractors and is due to the IRS by January 31 of the following year.

Accepted Answer

A) True 
 B)False

Question 9

McBean Farms has the following information on their Form 941: 
What amount should be entered in Column 1,Lines 5a and 5c? (Assume no Section 125 health insurance and that none of the employees had exceeded the Social Security wage base. )

Accepted Answer

A)  $16,264.00 
B)  $140,328.00 
C)  $8,700.34 and $2,034.76,respectively 
D)  $156,592

Question 10

Hodgdon Industries,a semi-weekly schedule depositor,pays its employees semimonthly on the 1st and 15th of the month.Per company policy,employees are paid their annual bonuses on December 15,the final payday of the year 2016.On Thursday,December 15,the bonuses were paid and the payroll tax liability was $103,850.When are the payroll tax deposits due for the December 15 pay date?

Accepted Answer

A)  Monday,December 19 
B)  Friday,December 23 
C)  Wednesday,December 21 
D)  Friday,December 16

Question 11

Schedule B must accompany Form 941 for a firm classified as a semi-weekly payroll tax depositor.

Accepted Answer

A) True 
 B)False

Exam 5: Employer Payroll Taxes and Labor Planning

FUTA tax rates vary from state to state.

Johnny's Tavern had 16 employees and total annual wages of $376,948 during the previous year.All employees earned more than $7,000 during the year.What is Johnny's Tavern's FUTA tax liability?

Cralic Company has 12 employees and operates in Texas.The Form 940 for the previous year contained the following information: What amount should be entered on line 5? (Assume that all employees had exceeded the FUTA wage base. )

Kohlmeier Industries had $87,950 of annual payroll taxes during the lookback period.The firm pays its employees biweekly on Wednesdays.Assuming that no payday has a tax liability in excess of $100,000,when are the payroll tax deposits due?

The number of employees contained in the different departments of a company is known as the:

Cralic Company has 12 employees and operates in Texas.The Form 940 for the previous year contained the following information: What amount should be entered on line 8?

Form W-3 is the report of wages issued to independent contractors and is due to the IRS by January 31 of the following year.

McBean Farms has the following information on their Form 941: What amount should be entered in Column 1,Lines 5a and 5c? (Assume no Section 125 health insurance and that none of the employees had exceeded the Social Security wage base. )

Schedule B must accompany Form 941 for a firm classified as a semi-weekly payroll tax depositor.