Question 1

In 2017,Willow Corporation had three employees.Two of the employees worked full-time and earned salaries of $25,000 each.The third employee worked 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 unemployment tax was paid to the state from Willow Corporation for 2017?

Accepted Answer

A) $136 
B) $168 
C) $918 
D) $972 
E) $1,134

Question 2

In 2017,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 2017,after the credit for state unemployment taxes?

Accepted Answer

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

Question 3

For 2017,the maximum base for the Social Security portion of the FICA tax is:

Accepted Answer

A) $118,500 
B) $127,200 
C) $119,900 
D) $125,000 
E) None of the above

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 the above

Question 5

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 6

In 2017,the maximum amount of wages subject to the Social Security portion of the FICA tax is $127,200.

Accepted Answer

A) True 
 B)False

Question 7

Elwin worked at three jobs during 2017.He earned $30,000,$27,000,and $9,000,respectively,from the jobs.What is the total amount of FICA tax that would have been withheld from Elwin's wages?

Accepted Answer

A) $4,054.80 
B) $4,092.00 
C) $5,003.10 
D) $5,049.00 
E) None of the above

Question 8

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.Assuming that Mary is unemployed,how many allowances should Gordon claim on his Form W-4,assuming no extra allowances for deductions or adjustments?

Accepted Answer

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

Question 9

Taxpayers with large amounts of deductions may claim extra withholding allowances on their Form W-4s.

Accepted Answer

A) True 
 B)False

Question 10

Melody and Todd are married and have employee wages of $250,000 each in 2017.They have no other income.How much additional 0.9% Medicare tax will Melody and Todd have to pay or receive as a refund when they file their 2017 income tax return? ​

Accepted Answer

A) $1,350 will be due with their return in addition to amounts withheld. 
B) $1,350 will be refunded with their return. 
C) $900 will be refunded with their return. 
D) $3,600 will be due with their return in addition to amounts withheld.

Question 11

The two most common methods of determining federal income tax withholding are the percentage method and the wage bracket method.

Accepted Answer

A) True 
 B)False

Question 12

Taxpayers with self-employment income who also have Form W-2 wage income from employment may be able to avoid making estimated tax payments by filing a Form W-4 and increasing the amount of their withholding.

Accepted Answer

A) True 
 B)False

Question 13

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

Question 14

Household employers are not required to pay FICA taxes on cash payments of less than $2,000 paid to any household employee in a calendar year.

Accepted Answer

A) True 
 B)False

Question 15

Gambling winnings must be reported to the IRS,but withholding of taxes on winnings is never required.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Steve is a single man who lives by himself.He has one job as a computer technician.How many withholding allowances can he claim?

Accepted Answer

A) 2 
B) 3 
C) 5 
D) 10 
E) He can claim any number of withholding allowances that he believes will leave him with proper withholding.

Question 18

A credit against the FUTA tax is available for state unemployment tax paid by the employer.

Accepted Answer

A) True 
 B)False

Question 19

What percentage of gross food and beverage sales is used in determining the amount of tips that an employer must report as allocated to employees?

Accepted Answer

A) 8 percent 
B) 10 percent 
C) 12 percent 
D) 15 percent 
E) None of the above

Question 20

If taxpayers fail to provide their bank with a taxpayer identification number,they are subject to backup withholding on interest payments.

Accepted Answer

A) True 
 B)False

Exam 9: Withholding Estimated Payments and Payroll Taxes

For 2017,the maximum base for the Social Security portion of the FICA tax is:

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

In 2017,the maximum amount of wages subject to the Social Security portion of the FICA tax is $127,200.

Elwin worked at three jobs during 2017.He earned $30,000,$27,000,and $9,000,respectively,from the jobs.What is the total amount of FICA tax that would have been withheld from Elwin's wages?

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.Assuming that Mary is unemployed,how many allowances should Gordon claim on his Form W-4,assuming no extra allowances for deductions or adjustments?

Taxpayers with large amounts of deductions may claim extra withholding allowances on their Form W-4s.

Melody and Todd are married and have employee wages of $250,000 each in 2017.They have no other income.How much additional 0.9% Medicare tax will Melody and Todd have to pay or receive as a refund when they file their 2017 income tax return?

The two most common methods of determining federal income tax withholding are the percentage method and the wage bracket method.

Taxpayers with self-employment income who also have Form W-2 wage income from employment may be able to avoid making estimated tax payments by filing a Form W-4 and increasing the amount of their withholding.

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?

Household employers are not required to pay FICA taxes on cash payments of less than $2,000 paid to any household employee in a calendar year.

Gambling winnings must be reported to the IRS,but withholding of taxes on winnings is never required.

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

Steve is a single man who lives by himself.He has one job as a computer technician.How many withholding allowances can he claim?

A credit against the FUTA tax is available for state unemployment tax paid by the employer.

What percentage of gross food and beverage sales is used in determining the amount of tips that an employer must report as allocated to employees?

If taxpayers fail to provide their bank with a taxpayer identification number,they are subject to backup withholding on interest payments.

Exam 9: Withholding Estimated Payments and Payroll Taxes

For 2017,the maximum base for the Social Security portion of the FICA tax is:

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

In 2017,the maximum amount of wages subject to the Social Security portion of the FICA tax is $127,200.

Elwin worked at three jobs during 2017.He earned $30,000,$27,000,and $9,000,respectively,from the jobs.What is the total amount of FICA tax that would have been withheld from Elwin's wages?

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.Assuming that Mary is unemployed,how many allowances should Gordon claim on his Form W-4,assuming no extra allowances for deductions or adjustments?

Taxpayers with large amounts of deductions may claim extra withholding allowances on their Form W-4s.

Melody and Todd are married and have employee wages of $250,000 each in 2017.They have no other income.How much additional 0.9% Medicare tax will Melody and Todd have to pay or receive as a refund when they file their 2017 income tax return? ​

The two most common methods of determining federal income tax withholding are the percentage method and the wage bracket method.

Taxpayers with self-employment income who also have Form W-2 wage income from employment may be able to avoid making estimated tax payments by filing a Form W-4 and increasing the amount of their withholding.

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?

Household employers are not required to pay FICA taxes on cash payments of less than $2,000 paid to any household employee in a calendar year.

Gambling winnings must be reported to the IRS,but withholding of taxes on winnings is never required.

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

Steve is a single man who lives by himself.He has one job as a computer technician.How many withholding allowances can he claim?

A credit against the FUTA tax is available for state unemployment tax paid by the employer.

What percentage of gross food and beverage sales is used in determining the amount of tips that an employer must report as allocated to employees?

If taxpayers fail to provide their bank with a taxpayer identification number,they are subject to backup withholding on interest payments.

Melody and Todd are married and have employee wages of $250,000 each in 2017.They have no other income.How much additional 0.9% Medicare tax will Melody and Todd have to pay or receive as a refund when they file their 2017 income tax return?