Payroll Accounting Chap
FIVE -SEVEN EXAM,,
[questions and correct
choices]A+
Intended Payment
1 - Applicable Tax Rates - ANSWERS-The formula used to "gross-up" supplemental payments in
order to cover the taxes on the supplemental payments is:
Trowbridge Company has just completed the processing of its year-end payroll and distributed
all the weekly paychecks. The payroll department is now computing the amount of the annual
bonus to be given to each worker. To determine the federal tax withholding, the company may
elect to - ANSWERS-combine the bonus with the wages for the current payroll period
The special period rule allows employers to use as the cutoff date for valuing non-cash fringe
benefits. - ANSWERS-October 31
Under which situations can an employer be liable for a net FUTA tax greater than 0.6 percent? -
ANSWERS-a. An employer is tardy in paying the state contributions
b.An employer is located in a state that has not met the repayment provisions of Title XII
advances.
c. Both of these choices are correct.
d.Neither of these choices is correct.
, C.
An employer, because of a favorable experience rating, is permitted to pay a state contribution
at a reduced rate of 1.5 percent. What percentage of taxable wages must be paid in the
aggregate to the federal and state governments? - ANSWERS-a.2.10%
b.0.60%
c.1.80%
d.2.00%
answer-a.
To obtain the maximum credit of 5.4% against the FUTA tax, the employer must make 2018
calendar year state contributions on or before which date? - ANSWERS-January 31, 2019
Which of the following types of payments are taxable under FUTA? - ANSWERS-a.Courtesy
discounts to employees
b.Commissions as compensation for covered employment and dismissal payments
c.Reimbursement of ordinary and necessary business expenses
d.Christmas gifts of nominal value
answer-b.
------coverage includes service of any nature performed outside the United States by a citizen of
the United States for an American employer. The major exception is service in any adjoining
coun-tries with which United States has an agreement relating to unemployment - ANSWERS-
FUTA
FIVE -SEVEN EXAM,,
[questions and correct
choices]A+
Intended Payment
1 - Applicable Tax Rates - ANSWERS-The formula used to "gross-up" supplemental payments in
order to cover the taxes on the supplemental payments is:
Trowbridge Company has just completed the processing of its year-end payroll and distributed
all the weekly paychecks. The payroll department is now computing the amount of the annual
bonus to be given to each worker. To determine the federal tax withholding, the company may
elect to - ANSWERS-combine the bonus with the wages for the current payroll period
The special period rule allows employers to use as the cutoff date for valuing non-cash fringe
benefits. - ANSWERS-October 31
Under which situations can an employer be liable for a net FUTA tax greater than 0.6 percent? -
ANSWERS-a. An employer is tardy in paying the state contributions
b.An employer is located in a state that has not met the repayment provisions of Title XII
advances.
c. Both of these choices are correct.
d.Neither of these choices is correct.
, C.
An employer, because of a favorable experience rating, is permitted to pay a state contribution
at a reduced rate of 1.5 percent. What percentage of taxable wages must be paid in the
aggregate to the federal and state governments? - ANSWERS-a.2.10%
b.0.60%
c.1.80%
d.2.00%
answer-a.
To obtain the maximum credit of 5.4% against the FUTA tax, the employer must make 2018
calendar year state contributions on or before which date? - ANSWERS-January 31, 2019
Which of the following types of payments are taxable under FUTA? - ANSWERS-a.Courtesy
discounts to employees
b.Commissions as compensation for covered employment and dismissal payments
c.Reimbursement of ordinary and necessary business expenses
d.Christmas gifts of nominal value
answer-b.
------coverage includes service of any nature performed outside the United States by a citizen of
the United States for an American employer. The major exception is service in any adjoining
coun-tries with which United States has an agreement relating to unemployment - ANSWERS-
FUTA
