"▪ Identify types of employment and taxes applicable to each type of employment
▪ Status and classification of workers
▪ Employer responsibilities and liabilities
▪ Methods to obtain EIN
▪ Special classes of employment, tax withholding and supplemental wage withholding"
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SCORE:
97%
PASSED
1,
If income tax has been withheld from an employee’s regular wages, which one of the following methods may be used for supplemental wages?
Add the supplemental and regular wages for the most recent payroll period of the prior year. Then, compute the income tax withholding as if the total were a single payment. Subtract the tax already withheld during the prior year from the regular wages. Withhold the remaining tax from the supplemental wages.
X Add the supplemental and regular wages for the most recent payroll period of the current year. Then compute the income tax withholding as if the total were a single payment. Subtract the tax already withheld from the regular wages. Withhold the remaining tax from the supplemental wages.
Add the supplemental and regular wages for the most recent payroll period of the current year. Then compute the income tax withholding as if the total were payments with the same frequency as the worker was paid during the year. Subtract the tax already withheld from the regular wages.
Add the supplemental and regular wages for the most recent payroll period of the current year. Then compute the income tax withholding as if the total were a single payment. Withhold the remaining tax from the supplemental wages.
2,
Is there a way to avoid a penalty if an employer failed to provide Forms W-2 for some of his or her employees?
No, unless the employees to whom the employer failed to issue Forms W-2 owed them money or property.
Yes, if the employer issues the forms before July 15 of the following year.
X No.
Yes, if the employer can demonstrate that the failure was due to reasonable cause and not to willful neglect.
3,
To calculate income tax withholding, employers must obtain a completed ___ from each employee.
Form I-9
Form W-2
X Form W-4
Form SS-8
4,
Which of the following is subject to supplemental wage withholding?
Regular wages.
Social security benefits.
SSI benefits.
X Annual bonus.
5,
SUTA payments may reduce FUTA liability by as much as:
0.80%.
10.80%.
X 5.40%.
1.60%.
6,
The wages of statutory employees are subject to social security and medicare taxes if all the following required conditions exist, EXCEPT:
The employee personally performs all the work.
X There is a written contract between the employee and employer.
There is a continuing relationship.
There is no substantial investment in facilities.
7,
Which of the following employees is most likely to receive a Form 1099-MISC?
X An independent contractor who earned $5,000 working for one company.
A part-time employee of a restaurant.
A full-time employee of a coffee house.
A part-time employee who earned $500 in tip income during the year.
8,
Which of the following is probably not a household employee?
X The taxpayer’s trash collector.
The taxpayer’s nanny.
The taxpayer’s maid.
The taxpayer’s butler.
9,
What must a farmer pay if he or she has an employee who was paid $500 in cash during the year?
Social security tax and FICA.
X Social security tax and medicare tax.
FUTA.
SUTA.
10,
Who is required to make quarterly deposits of estimated taxes?
X Self-employed persons with income.
Employees.
Employers.
Both employees and employers
11,
When should an employer send an employee’s Form W-4 to the IRS?
When the employee claims exemption from withholding.
When the employee requests advance EITC payments.
X When the IRS requests the Form W-4 from the employer.
When the employee changes number of withholding allowances.
12,
An employer may deposit payroll taxes through:
Any financial institution.
Any state chartered bank.
Any federal chartered bank.
X Any financial institution authorized as a Treasury Tax and Loan depository.
13,
Which of the following are NOT considered statutory employees?
Traveling salespersons selling to retail and wholesale customers.
Commissioned laundry or dry cleaning route drivers.
X Chiropractors and podiatrists working out of their homes.
Industrial piece workers working out of their homes
14,
Which of the following is NOT a factor in determining withholding from an employee's wages?
Frequency of pay periods.
Amount of wages paid to the employee.
Employee's marital status.
X Length of employment.
15,
What should an employer do when an employee earns more than $110,100 in 2012?
The employer should stop withholding medicare tax.
The employer should stop withholding social security and medicare taxes.
The employer should stop withholding FICA tax.
X The employer should stop withholding social security tax.
16,
Which of the following is probably a household employee?
A plumber who is paid a flat fee to repair the water main leading to the taxpayer’s house.
A pest control professional.
A roofer who is paid a flat fee to repair the taxpayer’s roof.
X The taxpayer’s live-in nanny.
17,
For which of the following household employees must an employer pay FUTA?
The taxpayer’s spouse.
X The taxpayer’s child, under age 24, if a full-time student.
The taxpayer’s parent.
The taxpayer’s child under age 21.
18,
The FUTA tax applies to wages paid for work performed in the home by whom?
Taxpayer’s spouse.
Taxpayer’s parent.
X Taxpayer’s sibling.
Taxpayer’s child under age 21.
19,
Which of the following would use EFTPS?
Employers, to file federal tax returns.
X Employers, to make federal tax payments.
Employees, to file federal tax returns.
Employers, to determine worker status.
20,
Which of the following is not a characteristic of employees?
The employer directs and controls how the workers do their job.
Their work is usually performed on the employer's premises using the employer's tools and equipment.
They are usually entitled to reimbursement of expenses and other benefits.
X The workers control how they do the work.
21,
Which tax is NOT a trust fund tax?
Medicare
X Unemployment
Income
Social security
22,
Which of the following is an acceptable method to request an EIN?
X Applying online at the IRS website.
No application is necessary because the IRS automatically issues EINs.
Checking the box on the employer’s Form 941.
Checking the box on the employer’s Form 940.
23,
All of the following are acceptable methods for obtaining an EIN, except:
Telephone.
Fax.
Online.
X E-mail.
24,
FUTA is 6.0% of each employee's wages, up to a maximum annual wage per employee of:
$6,500.00
X $7000.00
$7500.00
$8,000.00
25,
Which form is used by an employer to obtain a federal Employer Identification Number?
X Form SS-4
Form W-4
Form W-8
Form 2106
26,
Erin’s 2012 salary is $5,000 per month, and she is paid semimonthly. What is the amount of Erin’s employee’s share of social security tax withheld from each of her paychecks?
X $105.00
$140.00
$155.00
$175.00
27,
Carmela D’Antonio is single. Her weekly paycheck for the pay period ending February 13, 2012, is $400. What additional information do you need to compute the amount of her withholding?
The identity of her employer.
Whether she has dependents.
X Whether she claims any withholding allowances.
The amount of earned income she had last year.
28,
Which of the following collects SUTA?
The Department of the Treasury
The Department of Labor
X The State of California
The IRS
29,
Arturo’s salary is $12,000 per month, and he is paid semimonthly. What is the amount of medicare tax withheld from each of his paychecks?
None, because his annual income is over $97,500.
None, if he makes quarterly estimated payments of income tax.
X $87.00.
$97.00.
30,
Under what conditions must farmers pay FUTA and file Form 940?
If they paid cash wages of $20,000 or more to persons employed in farm labor during the current or preceding calendar year.
X If they paid cash wages of $20,000 or more in any calendar quarter to persons employed in farm labor during the current or preceding calendar year.
If they employed more than ten persons during the current or preceding calendar year.
If they employed more than ten persons for more than ten weeks during the current or preceding calendar year.
My Wrong Answer
Question
2
Is there a way to avoid a penalty if an employer failed to provide Forms W-2 for some of his or her employees?
Your answer: No.