Payroll Accounting Test 2 with verified detailed answers || || || || || || ||
_ is a payment the employer is required to withhold federal income taxes. - ✔✔Tipped employees
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with monthly tips of $120.
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Under the federal income tax withholding, _ is not defined as an employee. - ✔✔A partner
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The FICA tax rates to be paid by employers are _. - ✔✔6.2% for OASDI (social security)
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1.45% for HI (medicare) || || ||
_ is not taxable for FICA. - ✔✔Wage supplements to cover the difference between employees
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salaries and their military pay. || || || ||
_ is not defined under the FICA as taxable wages. - ✔✔Values of meals furnished to employees
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for employees convenience
|| ||
FICA defines all of the following as wages: - ✔✔Year end bonuses, standby payments, employer
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social security taxes paid by employer, first 6 months of sick pay
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_ is a kind of employment not excluded from coverage by FICA - ✔✔Federal government
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secretary hired in 1990 || || ||
_ is not defined by FICA as an employee - ✔✔A partner
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The annual value of one withholding allowance for federal income tax purpose is - ✔✔$3950
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If a person works for two different employers during the year and the total amount of OASDI
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taxes withheld by the two employers exceed the maximum OASDI tax the person is required to
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, pay, the worker can recover the amount of over payment by - ✔✔Claiming a credit in the amount
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of over payment on the federal income tax return filed for the year of unemployment
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A self-employed person must pay OASDI and HI taxes on net earnings at rates of - ✔✔OASDI @
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12.4% of first $117,000 and 2.9% of total net earnings
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The minimum wage to which a tipped employee is entitled is - ✔✔$7.25
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To curb the practice of employees filing false W-4 Forms, the IRS requires that an employer
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submit to the agency a copy of the a W-4 Form - ✔✔whenever IRS requests it in writing
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Beech refuses to state her marital status on W-4 Form which she gave to you, the payroll manager,
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when she was hired. What action should you take? - ✔✔You will have to withhold income taxes
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according to the income table for a single employee with no allowances || || || || || || || || || || ||
A personal allowance - ✔✔may be claimed to exempt a portion of their earnings from
|| || || || || || || || || || || || || || ||
withholding
_ is not properly defined as wages subject to the withholding of federal income taxes -
|| || || || || || || || || || || || || || || ||
✔✔Payments made under workers comp law || || || || ||
Fess receives wages totaling $74500 from his employer during the year. In addition, he has net
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earnings from self-employment amounting to $51,300. In determining Fess' taxable self-
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employment income for the OASDI tax, how much of her net self-employment earnings must || || || || || || || || || || || || || ||
Fess count? - ✔✔$42,500 || || ||
117,000-74500 = 42500 || ||
Carson Smart is paid for $1300 every two weeks. He is a participant in the company 401(k) plan
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and has $150 deducted from his pay for his contribution to the plan. He is married with two
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allowances. Using the appropriate wage-bracket table, determine how much would be deducted || || || || || || || || || || || ||
from his pay for federal income tax? - ✔✔$52
|| || || || || || || ||
_ is a payment the employer is required to withhold federal income taxes. - ✔✔Tipped employees
|| || || || || || || || || || || || || || ||
with monthly tips of $120.
|| || || || ||
Under the federal income tax withholding, _ is not defined as an employee. - ✔✔A partner
|| || || || || || || || || || || || || || ||
The FICA tax rates to be paid by employers are _. - ✔✔6.2% for OASDI (social security)
|| || || || || || || || || || || || || || || ||
1.45% for HI (medicare) || || ||
_ is not taxable for FICA. - ✔✔Wage supplements to cover the difference between employees
|| || || || || || || || || || || || || || ||
salaries and their military pay. || || || ||
_ is not defined under the FICA as taxable wages. - ✔✔Values of meals furnished to employees
|| || || || || || || || || || || || || || || || ||
for employees convenience
|| ||
FICA defines all of the following as wages: - ✔✔Year end bonuses, standby payments, employer
|| || || || || || || || || || || || || || ||
social security taxes paid by employer, first 6 months of sick pay
|| || || || || || || || || || ||
_ is a kind of employment not excluded from coverage by FICA - ✔✔Federal government
|| || || || || || || || || || || || || || ||
secretary hired in 1990 || || ||
_ is not defined by FICA as an employee - ✔✔A partner
|| || || || || || || || || || ||
The annual value of one withholding allowance for federal income tax purpose is - ✔✔$3950
|| || || || || || || || || || || || || ||
If a person works for two different employers during the year and the total amount of OASDI
|| || || || || || || || || || || || || || || || ||
taxes withheld by the two employers exceed the maximum OASDI tax the person is required to
|| || || || || || || || || || || || || || || ||
, pay, the worker can recover the amount of over payment by - ✔✔Claiming a credit in the amount
|| || || || || || || || || || || || || || || || || ||
of over payment on the federal income tax return filed for the year of unemployment
|| || || || || || || || || || || || || ||
A self-employed person must pay OASDI and HI taxes on net earnings at rates of - ✔✔OASDI @
|| || || || || || || || || || || || || || || || ||
12.4% of first $117,000 and 2.9% of total net earnings
|| || || || || || || || || ||
The minimum wage to which a tipped employee is entitled is - ✔✔$7.25
|| || || || || || || || || || || ||
To curb the practice of employees filing false W-4 Forms, the IRS requires that an employer
|| || || || || || || || || || || || || || || ||
submit to the agency a copy of the a W-4 Form - ✔✔whenever IRS requests it in writing
|| || || || || || || || || || || || || || || || ||
Beech refuses to state her marital status on W-4 Form which she gave to you, the payroll manager,
|| || || || || || || || || || || || || || || || ||
when she was hired. What action should you take? - ✔✔You will have to withhold income taxes
|| || || || || || || || || || || || || || || || || ||
according to the income table for a single employee with no allowances || || || || || || || || || || ||
A personal allowance - ✔✔may be claimed to exempt a portion of their earnings from
|| || || || || || || || || || || || || || ||
withholding
_ is not properly defined as wages subject to the withholding of federal income taxes -
|| || || || || || || || || || || || || || || ||
✔✔Payments made under workers comp law || || || || ||
Fess receives wages totaling $74500 from his employer during the year. In addition, he has net
|| || || || || || || || || || || || || || || ||
earnings from self-employment amounting to $51,300. In determining Fess' taxable self-
|| || || || || || || || || ||
employment income for the OASDI tax, how much of her net self-employment earnings must || || || || || || || || || || || || || ||
Fess count? - ✔✔$42,500 || || ||
117,000-74500 = 42500 || ||
Carson Smart is paid for $1300 every two weeks. He is a participant in the company 401(k) plan
|| || || || || || || || || || || || || || || || || ||
and has $150 deducted from his pay for his contribution to the plan. He is married with two
|| || || || || || || || || || || || || || || || || ||
allowances. Using the appropriate wage-bracket table, determine how much would be deducted || || || || || || || || || || || ||
from his pay for federal income tax? - ✔✔$52
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