CFL Revision For Exam Questions with
100% Correct Answers.
Employees decide when to pay their payroll taxes
false
Federal income taxes are used to pay the interest on the national debt
true
The Medicare tax rate is
1.45 percent
Employees use Form W-4 to prove that they are eligible to work in the United States
false
The Social Security tax rate is
6.2 percent
Employees send their payroll taxes directly to the federal government
false
This form is used by employers to compute the amount of federal income tax to withhold
form w-4
Who completes Form W-4?
employee
Gross pay
the amount the employee earns
Net pay
the amount the employee receives after deductions
, Food servers do not need to report tips as taxable income
false
Hairdressers include in taxable income the tips they receive from customers
true
Employers use Form W-4 to report wage and tax information to employees
false
Tips can be received in the form of money or goods
true
Wages earned by a worker at a casual fast-food restaurant are
taxable
Tips earned by a server in a fashionable restaurant are
taxable
Overtime pay earned by a construction worker for working extra hours to complete a
project on time is
taxable
A bonus given to a salesperson for making the most sales during the month is
taxable
Free lawn care service for a month for a mailroom employee who developed a handbook
for new employees is
taxable
The Wage and Tax Statement is
form w-2
100% Correct Answers.
Employees decide when to pay their payroll taxes
false
Federal income taxes are used to pay the interest on the national debt
true
The Medicare tax rate is
1.45 percent
Employees use Form W-4 to prove that they are eligible to work in the United States
false
The Social Security tax rate is
6.2 percent
Employees send their payroll taxes directly to the federal government
false
This form is used by employers to compute the amount of federal income tax to withhold
form w-4
Who completes Form W-4?
employee
Gross pay
the amount the employee earns
Net pay
the amount the employee receives after deductions
, Food servers do not need to report tips as taxable income
false
Hairdressers include in taxable income the tips they receive from customers
true
Employers use Form W-4 to report wage and tax information to employees
false
Tips can be received in the form of money or goods
true
Wages earned by a worker at a casual fast-food restaurant are
taxable
Tips earned by a server in a fashionable restaurant are
taxable
Overtime pay earned by a construction worker for working extra hours to complete a
project on time is
taxable
A bonus given to a salesperson for making the most sales during the month is
taxable
Free lawn care service for a month for a mailroom employee who developed a handbook
for new employees is
taxable
The Wage and Tax Statement is
form w-2
