Payroll Accounting Final Exam with verified detailed solutions || || || || || || ||
The number of withholding allowances claimed by an employee is set forth on Form W-2.
|| || || || || || || || || || || || || ||
True
False - ✔✔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 - ✔✔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% - ✔✔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 - ✔✔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 || ||
reduced tuition for education - ✔✔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 - ✔✔False || ||
Employers cannot send Forms W-2 to employees electronically. || || || || || || ||
True
False - ✔✔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
False - ✔✔True || ||
Withholding allowance certificates must be retained by employers for as long as the certificates
|| || || || || || || || || || || || || ||
are in effect and for four years thereafter.
|| || || || || || ||
True
False - ✔✔True || ||
The number of withholding allowances claimed by an employee is set forth on Form W-2.
|| || || || || || || || || || || || || ||
True
False - ✔✔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 - ✔✔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% - ✔✔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 - ✔✔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 || ||
reduced tuition for education - ✔✔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 - ✔✔False || ||
Employers cannot send Forms W-2 to employees electronically. || || || || || || ||
True
False - ✔✔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
False - ✔✔True || ||
Withholding allowance certificates must be retained by employers for as long as the certificates
|| || || || || || || || || || || || || ||
are in effect and for four years thereafter.
|| || || || || || ||
True
False - ✔✔True || ||
