PAYROLL ACCOUNTING FINAL EXAM
QUESTIONS AND 100% VERIFIED
ANSWERS / LATEST UPDATE / GRADED
A+ / GUARANTEED PASS!
A bonus paid as remuneration for services is not considered taxable wages for
unemployment tax purposes even if the employee has not exceeded the taxable wage
base.
True
False
- answers-False
A publisher is preparing information returns to report the royalties paid to authors
(nonemployees) during the prior calendar year. The proper information return to be
completed is
Form W-2
Form W-3
Form 1099-MISC
Form 1099-DIV
any of the above forms
- answers-Form 1099-MISC
A sole proprietor with two employees is exempt from the requirements of the federal
income tax withholding law.
True
False
- answers-False
A worker with three employers should always claim at least one withholding allowance
with each employer.
True
False
- answers-False
All of the states allow employers to make voluntary contributions into their state
unemployment fund so that a lower tax contribution rate would be assigned.
True
False
- answers-False
, An employee filed a Form W-4 and claimed 22 withholding allowances. The employer
should withhold 22% of the worker's gross earnings for federal income taxes until the
form W-4 is approved by the IRS.
True
False
- answers-False
At the time of depositing FICA taxes and employees' federal income taxes, the account
FICA Tax Expense is debited for both the employees' and the employer's portions of the
FICA taxes.
True
False
- answers-False
Both the percentage method and the wage-bracket method of withholding have each of
the following characteristics except
unmarried persons are distinguished from married persons
a table of allowances values is used
employees are given the full benefit of the allowances they claim
tables and wage-bracket charts are used to determine the amount withheld
the standard deduction is taken into account
- answers-a table of allowances values is used
Cash tips of $20 dollars or more in a month must be reported to the employer by the
tipped employee by the end of the following month.
True
False
- answers-False
Contributions made by the employer into employees' health savings accounts are
excluded from the employee's taxable income.
True
False
- answers-True
Direct deposit of paychecks can be forced on employees in every state.
True
False
- answers-False
Disposable earnings are the earnings remaining after withholding only federal income
taxes.
True
False
- answers-False
QUESTIONS AND 100% VERIFIED
ANSWERS / LATEST UPDATE / GRADED
A+ / GUARANTEED PASS!
A bonus paid as remuneration for services is not considered taxable wages for
unemployment tax purposes even if the employee has not exceeded the taxable wage
base.
True
False
- answers-False
A publisher is preparing information returns to report the royalties paid to authors
(nonemployees) during the prior calendar year. The proper information return to be
completed is
Form W-2
Form W-3
Form 1099-MISC
Form 1099-DIV
any of the above forms
- answers-Form 1099-MISC
A sole proprietor with two employees is exempt from the requirements of the federal
income tax withholding law.
True
False
- answers-False
A worker with three employers should always claim at least one withholding allowance
with each employer.
True
False
- answers-False
All of the states allow employers to make voluntary contributions into their state
unemployment fund so that a lower tax contribution rate would be assigned.
True
False
- answers-False
, An employee filed a Form W-4 and claimed 22 withholding allowances. The employer
should withhold 22% of the worker's gross earnings for federal income taxes until the
form W-4 is approved by the IRS.
True
False
- answers-False
At the time of depositing FICA taxes and employees' federal income taxes, the account
FICA Tax Expense is debited for both the employees' and the employer's portions of the
FICA taxes.
True
False
- answers-False
Both the percentage method and the wage-bracket method of withholding have each of
the following characteristics except
unmarried persons are distinguished from married persons
a table of allowances values is used
employees are given the full benefit of the allowances they claim
tables and wage-bracket charts are used to determine the amount withheld
the standard deduction is taken into account
- answers-a table of allowances values is used
Cash tips of $20 dollars or more in a month must be reported to the employer by the
tipped employee by the end of the following month.
True
False
- answers-False
Contributions made by the employer into employees' health savings accounts are
excluded from the employee's taxable income.
True
False
- answers-True
Direct deposit of paychecks can be forced on employees in every state.
True
False
- answers-False
Disposable earnings are the earnings remaining after withholding only federal income
taxes.
True
False
- answers-False
