PAYROLL ACCOUNTING 2301 EXAM QUESTIONS AND ANSWERS 100% CORRECT!

Daniel is a new employee looking at contributing to a 401(k) offered through the company. How will his contributions affect his tax liability? - ANSWER -Lower federal income tax. -No change to FICA tax liability. The purpose for using grossed-up pay is to - ANSWER - Satisfy tax liabilities - Achieve a predetermined net pay Process to compute employee pay: - ANSWER 1. Start with gross pay. 2. Subtract pre-tax deductions to get total taxable earnings. 3. Compute taxes to be withheld from taxable earnings. 4. Deduct taxes. 5. Deduct voluntary and mandated deductions. 6. result is net pay The employer's role in federal income taxes is - ANSWER - Reporter - Depositor - Collector Which of the following are more often employer-only taxes? - ANSWER State and Federal unemployment taxes A form used to track all employee deductions to ensure accuracy of employee pay is called a payroll - ANSWER Register True or False: The new Form W-4 removes the withholding allowances and focuses on marital status, annual income, and dependents. - ANSWER True Health insurance is an example of a ________________-tax deduction. - ANSWER pre Determinates of federal withholding taxes on Form W-4 from 2019 or prior years: - ANSWER 1. Gross pay 2. Pay frequency 3. Marital status 4. number of withholdings allowances claimed on form W-4 The IRS created what to assist with manual federal income tax computation? - A