Payroll Accounting Final Exam Actual
Questions and Answers 2026
The number of withholding allowances claimed by an employee is
set forth on Form W-2.
True
False -
correct 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 -
correct 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
,Payroll Accounting Final Exam Actual
Questions and Answers 2026
taxed as though it were a regular payment for the periods occurring
during the vacation period
tax-free
a flat 22% -
correct 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 -
correct 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
, Payroll Accounting Final Exam Actual
Questions and Answers 2026
qualified employee discounts
reduced tuition for education -
correct answer ✅membership in a country club
Not-for-profit corporations that are exempt from federal income
taxes do not withhold federal income taxes from their employee's
pay.
True
False -
correct answer ✅False
Employers cannot send Forms W-2 to employees electronically.
True
False -
correct answer ✅False
Employees who are receiving over $1 million dollars in
supplemental wages for the year will have a 37% withholding rate
apply to the supplemental payments in excess of $1 million dollars.
True
Questions and Answers 2026
The number of withholding allowances claimed by an employee is
set forth on Form W-2.
True
False -
correct 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 -
correct 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
,Payroll Accounting Final Exam Actual
Questions and Answers 2026
taxed as though it were a regular payment for the periods occurring
during the vacation period
tax-free
a flat 22% -
correct 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 -
correct 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
, Payroll Accounting Final Exam Actual
Questions and Answers 2026
qualified employee discounts
reduced tuition for education -
correct answer ✅membership in a country club
Not-for-profit corporations that are exempt from federal income
taxes do not withhold federal income taxes from their employee's
pay.
True
False -
correct answer ✅False
Employers cannot send Forms W-2 to employees electronically.
True
False -
correct answer ✅False
Employees who are receiving over $1 million dollars in
supplemental wages for the year will have a 37% withholding rate
apply to the supplemental payments in excess of $1 million dollars.
True
