ACC 105 Final Exam Questions with Correct Answers
Social Security Act of 1935? Correct Answer-required every state to
establish an unemployment compensation program to provide payments
to workers who are temporarily unemployed. This act is the basis for the
unemployment programs currently in place. Both federal (FUTA) and
state (SUTA) payroll taxes fund this unemployment insurance program.
Federal Unemployment Tax Act (FUTA)? Correct Answer-This act
imposes a tax on employers to pay for the cost of administering the
federal and state programs.
This act is the basis for the unemployment programs currently in place?
Correct Answer-Social Security Act of 1935
Purpose of FUTA taxes? Correct Answer-to provide funds that the states
can use to administer unemployment benefits.
Under FUTA, Federal monies are not used to pay...? Correct Answer-to
pay the weekly benefits for unemployed workers. Those weekly benefits
are paid by the state in accordance with their unemployment tax laws
(which makes the payments based upon collections of state
unemployment tax withholdings). All states must comply with FUTA
standards to help ensure consistency in the unemployment provisions
between states.
Under FUTA, and employer may be considered? Correct Answer-an
individual, corporation, partnership, company, association, trust, or
estate.
,In general, the federal law considers a person or business to be an
employer if either of the following applies? Correct Answer-Wages of
$1,500 or more were paid during a calendar quarter in the current or
preceding calendar year, or
One or more persons were employed at least a portion of one day in each
of the 20 (do not have to be consecutive) or more calendar weeks during
the preceding or current taxable year. As soon as the employer meets
either test, the employer becomes liable for the FUTA tax for the entire
year, even if they meet the test during the last week of the calendar year.
A worker is considered an employee if? Correct Answer-a business tells,
or has the right to tell, a worker how, when, and where to work.
Employees that are included for FUTA purposes include the following?
Correct Answer-An agent-driver or a commission-driver who distributes
food or beverages (other than milk) or laundry or dry-cleaning services
A traveling or a city salesperson engaged in full-time soliciting and
transmitting to the principal orders for merchandise for resale or supplies
for use in business operations. Also, all work performed by an employee
is covered regardless of the citizenship or residence of the employee, if
the work is performed in the United States.
Employees excluded from FUTA taxes include? Correct Answer-Home
workers and full-time insurance agents are exempt under FUTA. Some
others that are exempt include casual workers, directors of
corporations/members of partnerships, independent contractors, foreign
students/exchange visitors, student nurses/interns, and federal, state, or
local governments.
, Under FUTA, in helping to determine the correct state to cover the
employee, the employer must consider the following factors? Correct
Answer-Place where the work is localized (where most work is
performed - work in another state may be temporary)
Location of base of operations (generally, the state where the employee
generally starts from and returns to)
Location of place from which operations are directed or controlled
(place where the person is located who is providing
directions/instructions to the employee)
Location of employee's residence (to be used if no determination can be
made from the previous three tests)
Interstate Reciprocal Coverage Agreement (FUTA)? Correct Answer-In
situations where an employee's coverage cannot be determined using
these factors, states may enter into reciprocal agreements. Under which
the employer may elect coverage on one state.
FUTA taxable Wages include? Correct Answer-only the first $7,000
(hourly, commission, piece-meal, etc.) paid by an employer to an
employee during the calendar year.
The basis for the unemployment compensation tax? Correct Answer-he
wages that have actually been paid by the employer to the employee.
FUTA Tax Rate? Correct Answer-With the expiration of the .2% surtax
in 2011, the gross FUTA rate was reduced to 6.0%.For 2013, the
Social Security Act of 1935? Correct Answer-required every state to
establish an unemployment compensation program to provide payments
to workers who are temporarily unemployed. This act is the basis for the
unemployment programs currently in place. Both federal (FUTA) and
state (SUTA) payroll taxes fund this unemployment insurance program.
Federal Unemployment Tax Act (FUTA)? Correct Answer-This act
imposes a tax on employers to pay for the cost of administering the
federal and state programs.
This act is the basis for the unemployment programs currently in place?
Correct Answer-Social Security Act of 1935
Purpose of FUTA taxes? Correct Answer-to provide funds that the states
can use to administer unemployment benefits.
Under FUTA, Federal monies are not used to pay...? Correct Answer-to
pay the weekly benefits for unemployed workers. Those weekly benefits
are paid by the state in accordance with their unemployment tax laws
(which makes the payments based upon collections of state
unemployment tax withholdings). All states must comply with FUTA
standards to help ensure consistency in the unemployment provisions
between states.
Under FUTA, and employer may be considered? Correct Answer-an
individual, corporation, partnership, company, association, trust, or
estate.
,In general, the federal law considers a person or business to be an
employer if either of the following applies? Correct Answer-Wages of
$1,500 or more were paid during a calendar quarter in the current or
preceding calendar year, or
One or more persons were employed at least a portion of one day in each
of the 20 (do not have to be consecutive) or more calendar weeks during
the preceding or current taxable year. As soon as the employer meets
either test, the employer becomes liable for the FUTA tax for the entire
year, even if they meet the test during the last week of the calendar year.
A worker is considered an employee if? Correct Answer-a business tells,
or has the right to tell, a worker how, when, and where to work.
Employees that are included for FUTA purposes include the following?
Correct Answer-An agent-driver or a commission-driver who distributes
food or beverages (other than milk) or laundry or dry-cleaning services
A traveling or a city salesperson engaged in full-time soliciting and
transmitting to the principal orders for merchandise for resale or supplies
for use in business operations. Also, all work performed by an employee
is covered regardless of the citizenship or residence of the employee, if
the work is performed in the United States.
Employees excluded from FUTA taxes include? Correct Answer-Home
workers and full-time insurance agents are exempt under FUTA. Some
others that are exempt include casual workers, directors of
corporations/members of partnerships, independent contractors, foreign
students/exchange visitors, student nurses/interns, and federal, state, or
local governments.
, Under FUTA, in helping to determine the correct state to cover the
employee, the employer must consider the following factors? Correct
Answer-Place where the work is localized (where most work is
performed - work in another state may be temporary)
Location of base of operations (generally, the state where the employee
generally starts from and returns to)
Location of place from which operations are directed or controlled
(place where the person is located who is providing
directions/instructions to the employee)
Location of employee's residence (to be used if no determination can be
made from the previous three tests)
Interstate Reciprocal Coverage Agreement (FUTA)? Correct Answer-In
situations where an employee's coverage cannot be determined using
these factors, states may enter into reciprocal agreements. Under which
the employer may elect coverage on one state.
FUTA taxable Wages include? Correct Answer-only the first $7,000
(hourly, commission, piece-meal, etc.) paid by an employer to an
employee during the calendar year.
The basis for the unemployment compensation tax? Correct Answer-he
wages that have actually been paid by the employer to the employee.
FUTA Tax Rate? Correct Answer-With the expiration of the .2% surtax
in 2011, the gross FUTA rate was reduced to 6.0%.For 2013, the
