A traveling salesperson who solicits and transmits to the principal orders for
merchandise for resale is considered an employee under FUTA.
a. True
b. False
Unemployment taxes (FUTA and SUTA) do not have to be paid by an employer who
has only parttime employees.
a. True
b. False
Employers file Form 941 with the IRS center of the region in which the employer’s
principal place of business is located.
a. True
b. False
Which of the following deposit requirements pertains to a nonagricultural employer
who has employer FICA taxes and withheld employee FICA taxes and income taxes of
$125,000 at the end of payday on Friday, August 14, 20?
a. No deposit is required until Tuesday, August 18.
b. The taxes must be deposited by the close of the next banking day.
c. The taxes must be deposited on or before August 31.
d. The undeposited taxes should be carried over to the end of September.
e. None of the above.
If the employer is tardy in paying the state contributions, the credit against the federal
tax is limited to what percent of the late payments that would have been allowed as a
credit if the contributions had been paid on time?
a. 6.2%
b. 90%
c. 5.13%
d. 20%
e. 0%
In the case of a parttime employee, the employer is not liable to pay any of the
employee’s earnings.
a. True
b. False
Service charges that are passed on to the employee by the employer are not part of the
disposable earnings subject to garnishment.
a. True
b. False
Domestics are excluded from coverage under the FLSA individual employee coverage.
a. True
b. False
In the IRA form of the Simple Retirement Account, employers must match the
employee’s contribution, dollarfordollar, up to 3% of the employee’s compensation.
a. True
b. False
ERISA provides for full vesting of the employer’s contribution to an employee’s
pension fund in three years or gradually over:
a. ten years.
b. five years.
c. six years.
d. seven years.
e. No gradual vesting is allowed.
Only six states do not impose a state unemployment tax on employers in their state.
a. True
b. False
FICA defines all of the following as employees except:
a. vice presidents.
b. partners.
c. superintendents.
d. fulltime life insurance salespersons.
e. payroll managers.
Under enterprise coverage, all employees of a business are covered by the FLSA if the
organization is:
a. a nursing home.
b. a public agency.
c. a hospital.
d. all of the above.
e. none of the above.
The Age Discrimination in Employment Act provides protection to virtually all workers
over the age of:
a. 50.
b. 65.
c. 70.
d. 75.
e. 40.
Employees paid biweekly receive their remuneration every two weeks.
a. True
b. False
Prehire questions pertaining to religion, gender, national origin, or age are allowed if:
a. all employees are asked the same questions.
b. only foreignborn applicants are asked these questions.
c. these factors are bona fide occupational qualifications for the job.
d. they are not in written form.
e. the applicant is married.
Although commissions are considered payments for hours worked, in all cases they are
excluded when determining the regular hourly rate.
a. True
b. False
The garnishment that takes priority over all others is
:HTMLENTITY#8203HTMLENTITY
a. HTMLENTITY#8203HTMLENTITYa federal tax levy
b. HTMLENTITY#8203HTMLENTITYa government student loan
c. HTMLENTITY#8203HTMLENTITYa creditor garnishment
d. HTMLENTITY#8203HTMLENTITYan administrative wage garnishment
e. HTMLENTITY#8203HTMLENTITYa child support order
If the accumulated employment taxes during a quarter are less than $2,500, no deposits
are required.
a. True
b. False
The payroll taxes incurred by an employer are FICA, FUTA, and SUTA.
a. True
b. False
Employers are now required to photocopy new employees’ Form I9 documents.
a. True
b. False
Posting to the general ledger for payroll entries is done only at the end of each calendar
year.
a. True
b. False
If an employee works in more than one state, the employer must pay a separate SUTA
tax to each of those states in which the employee earns wages.
a. True
b. False
Employers may adopt the practice of recording an employee’s starting and stopping
time to the nearest quarter of an hour.
a. True
b. False
Which of the following statements correctly describes the withholding of federal
income taxes and social security taxes on tips?
a. Tips amounting to $10 or more in a calendar month must be reported by tipped
employees to their employers.
b. The withholding of federal income taxes on employees’ reported tip income is made
from the amount of tips reported by employees.
c. When employees report taxable tips in connection with employment in which they
also receive regular wages, the amount of tax to be withheld on the tips is computed as
if the tips were a supplemental wage payment.
d. Employers do not withhold FICA taxes on the tipped employees’ reported tip income.
e. None of the above statements is correct.
The Social Security Act does not require selfemployed persons to have an account
number.
a. True
b. False
The wage and salaries expense account is an operating expense account debited for total
net pay each payroll period.
a. True
b. False
Under the Affordable Care Act, employers with 50 or more fulltime employees during
the previous year are required to provide health insurance coverage for all fulltime
employees.
a. True
b. False
Which of the following forms is used to report rents paid over $600 to landlords?
a. Form 1099R
b. Form 1099INT
c. Form 1099MISC
d. Form 1099G
e. Form 8027
To be designated a semiweekly depositor, how much in employment taxes would an
employer have reported for the four quarters in the lookback period?
a. More than $50,000.
b. More than $100,000.
c. Less than $50,000.
d. More than $2,500.
e. None of the above.
Exempt educational assistance includes payments for tools that employees keep after
they complete a course of instruction.
a. True
b. False
One of the tests to be met for the whitecollar exemption for an executive is to be paid a
salary of at least $1,000 per week.
a. True
b. False
Even if a state repays its Title XII advances, all employers in that state are subject to a
credit reduction in the year of the advance.
a. True
b. False
For state income tax purposes, all states treat 401(k) plan payroll deductions as
nontaxable.
a. True
b. False
Which of the following cannot be included in a cafeteria plan?
a. Health insurance
b. Groupterm life insurance (first $50,000 of coverage)
c. Dependent care assistance (first $5,000)
d. Selfinsured medical reimbursement plan
e. Educational assistance
Instruction 31
Use the following tax rates, ceiling and maximum taxes:
Employee and Employer OASDI: 6.20% $127,200 $7,886.40
Employee and Employer HI: 1.45% No limit No maximum
Selfemployed OASDI: 12.4% $127,200 $15,772.80
Selfemployed HI: 2.9% No limit No maximum
HTMLENTITY#8203HTMLENTITY
Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to
selfemployed.
HTMLENTITY#8203HTMLENTITY
Instruction 31
Use the following tax rates, ceiling and maximum taxes:
Employee and Employer OASDI: 6.20% $127,200 $7,886.40
Employee and Employer HI: 1.45% No limit No maximum
Selfemployed OASDI: 12.4% $127,200 $15,772.80
Selfemployed HI: 2.9% No limit No maximum
HTMLENTITY#8203HTMLENTITY
Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to
selfemployed.
HTMLENTITY#8203HTMLENTITY
Exhibit 41:
Use the following tables to calculate your answers.
Refer to Exhibit 41.Mary Matthews made $950 during a biweekly pay period only
social security (fully taxable) and federal income taxes attach to her pay. Matthews
contributes $100 each biweekly pay to her company’s 401k. Determine Matthews take
home pay if she is married and claims 2 allowances. (Use Wage Bracket Method)
________________
Instruction 31
Use the following tax rates, ceiling and maximum taxes:
Employee and Employer OASDI: 6.20% $127,200 $7,886.40
Employee and Employer HI: 1.45% No limit No maximum
Selfemployed OASDI: 12.4% $127,200 $15,772.80
Selfemployed HI: 2.9% No limit No maximum
HTMLENTITY#8203HTMLENTITY
Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to
selfemployed.
HTMLENTITY#8203HTMLENTITY
In Part 5 of Form 940, Peterson Company reported FUTA tax liabilities as follows:
First quarter:$397.50
Second quarter:$209.10
Third quarter:$274.50
Fourth quarter:$262.20
List the amounts and the dates of each required FUTA tax deposit:
First Quarter Deposit$__________date__________
Second Quarter Deposit$__________date__________
Third Quarter Deposit$__________date__________
Fourth Quarter Deposit$__________date__________
Instruction 31
Use the following tax rates, ceiling and maximum taxes:
Employee and Employer OASDI: 6.20% $127,200 $7,886.40
Employee and Employer HI: 1.45% No limit No maximum
Selfemployed OASDI: 12.4% $127,200 $15,772.80
Selfemployed HI: 2.9% No limit No maximum
HTMLENTITY#8203HTMLENTITY
Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to
selfemployed.
HTMLENTITY#8203HTMLENTITY