PAYROLL ACCOUNTING FINAL EXAM
QUESTIONS AND ANSWERS 100%
ACCURATE!!
, The number of withholding allowances claimed by an employee is set forth on Form W-
2.
True
False - ANSWER 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 - ANSWER a table of allowances values is
used
The withholding on vacation wage payments is
a flat 15%
based on the total amount of the wage payment plus the vacation pay
taxed as though it were a regular payment for the periods occurring during the vacation
period
tax-free
a flat 22% - ANSWER taxed as though it were a regular payment for the periods
occurring during the vacation period
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 - ANSWER Form 1099-MISC
Which of the following fringe benefits is taxable?
membership in a country club
use of on-premise athletic facility
job-placement assistance
qualified employee discounts
QUESTIONS AND ANSWERS 100%
ACCURATE!!
, The number of withholding allowances claimed by an employee is set forth on Form W-
2.
True
False - ANSWER 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 - ANSWER a table of allowances values is
used
The withholding on vacation wage payments is
a flat 15%
based on the total amount of the wage payment plus the vacation pay
taxed as though it were a regular payment for the periods occurring during the vacation
period
tax-free
a flat 22% - ANSWER taxed as though it were a regular payment for the periods
occurring during the vacation period
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 - ANSWER Form 1099-MISC
Which of the following fringe benefits is taxable?
membership in a country club
use of on-premise athletic facility
job-placement assistance
qualified employee discounts
