jenleigh2607
Nov 15, 2011, 11:16 AM
1.
Before any federal income taxes may be withheld, there must be, or must have been, an employer-employee relationship.
A) True
B) False
2.
The amount of federal income taxes to be withheld is determined after subtracting from the employee's gross wages any local and state taxes.
A) True
B) False
3.
All taxable noncash fringe benefits received during the year can only be added to the employees' taxable pay on the last payday of the year.
A) True
B) False
4.
A waiter receives cash tips amounting to $120 in July. The waiter must report the amount of the cash tips to the employer by August 10.
A) True
B) False
5.
The payments to a cook employed by a college fraternity are excluded from federal income tax withholding.
A) True
B) False
6.
There is no limit to the amount that an employer can contribute in an employee's SIMPLE retirement account.
A) True
B) False
7.
In the case of a 401(k) plan, employees age 50 or over can shelter an extra $10,000 of their wages from federal income tax.
A) True
B) False
8.
The IRA format of the SIMPLE plan allows employees to make tax-free contributions of up to $11,500.
A) True
B) False
9.
In the IRA form of the Simple Retirement Account, employers must match the employee's contribution, dollar-for-dollar, up to 3% of the employee's compensation.
A) True
B) False
10.
Evers, who works for two employers, is entitled to three personal allowances. Evers must claim the three allowances with each of the two employers during the entire calendar year.
A) True
B) False
11.
After completion of Form W-4, an employer must copy the employee's social security card and place it in the employee's employment file.
A) True
B) False
12.
The special withholding allowance may be claimed only by those employees who do not itemize deductions on their income tax returns.
A) True
B) False
13.
Gere became the father of triplets on June 20. He must file an amended Form W-4 on or before June 30.
A) True
B) False
14.
If married employees do not claim their marital status on Form W-4, the employer must withhold according to the withholding tables for single employees.
A) True
B) False
15.
On August 1, Hunt filed an amended Form W-4 to show a decrease in the number of allowances claimed. Hunt's employer must put the new withholding allowance certificate into effect before the next weekly payday on August 5.
A) True
B) False
16.
An employee submits an invalid Form W-4 to the employer and does not replace it with a valid form. The employer should withhold federal income taxes at the rate for a single person claiming no exemptions.
A) True
B) False
17.
By completing Form W-4P, a person can elect to have no income tax withheld from the annuity amounts the person receives.
A) True
B) False
18.
Of the two main methods of withholding, only the wage-bracket method distinguishes unmarried persons from married persons.
A) True
B) False
19.
The standard deduction varies according to whether the wage-bracket method or the percentage method is used.
A) True
B) False
20.
For state income tax purposes, all states treat 401(k) plan payroll deductions as nontaxable.
A) True
B) False
21.
For which of the following payments is the employer required to withhold federal income taxes?
A) Advances made to sales personnel for traveling expenses
B) Tipped employee's monthly tips of $120
C) Deceased person's wages paid to the estate
D) Minister of Presbyterian church
E) All of the above
22.
Which of the following cannot be included in a cafeteria plan?
A) Health insurance
B) Group-term life insurance (first $50,000 of coverage)
C) Dependent care assistance (first $5,000)
D) Self-insured medical reimbursement plan
E) Educational assistance
23.
A personal allowance:
A) amounted to $2,000 in 2011.
B) may be claimed to exempt a portion of their earnings from withholding.
C) is indexed for inflation every calendar quarter.
D) may be claimed at the same time with each employer for whom an employee is working during the year.
E) for one person is a different amount for a single versus a married taxpayer.
24.
Beech refuses to state her marital status on Form W-4 which she gave to you, the payroll manager, when she was hired. You should:
A) tell Beech that it is OK since you know that she was recently divorced and is reluctant to talk about it.
B) inform Beech that she will have to write the IRS and give her reasons for refusing to state her marital status.
C) tell Beech that you will have to withhold income taxes as if she were married and had claimed one allowance.
D) tell Beech that you will have to withhold income taxes according to the withholding table for a single employee with no allowances.
E) advise Beech to write "It is no business of yours." in the margin of her Form W-4.
25.
Arch gives you an amended Form W-4 dated March 13, 2011, on which he claims two additional withholding allowances. He asks you to refund the excess taxes that were deducted from January 1 to March 13 when Arch claimed only one withholding allowance. You should:
A) repay the overwithheld taxes on Arch's next payday.
B) tell Arch that you will spread out a refund of the overwithheld taxes equally over the next six pays.
C) inform Arch that you are unable to repay the overwithheld taxes that were withheld before March 13 and that the adjustment will have to be made when he files his annual income tax return.
D) tell Arch to write the IRS immediately and ask for a refund of the overwithheld taxes.
E) inform Arch that you will appoint a committee to study his request.
26.
To curb the practice of employees filing false Forms W-4, the IRS requires that an employer submit to the agency a copy of each Form W-4:
A) the IRS has requested in writing.
B) on which an employee, usually earning $180 each week at the time Form W-4 was filed, now claims to be exempt from withholding.
C) on which an employee claims to be single but has 9 withholding allowances.
D) on which a married employee claims no withholding allowances.
E) on which a recently divorced employee claims 5 withholding allowances and authorizes an additional $10 to be withheld each week.
27.
Which of the following forms is used to report the amount of distributions from pension and retirement plans?
A) W-2c
B) 1099-R
C) 1099-PEN
D) W-3p
E) W-4
28.
An employer must file an information return under all of the following conditions except:
A) to report $1,000 of compensation paid to an individual who is not an employee.
B) to report the wages totaling $600 paid to an independent contractor during the calendar year.
C) to report dividends totaling $600 paid to an individual during the calendar year.
D) to report commissions of $500 paid to a self-employed salesman.
E) An information return must be filed under each of the above conditions.
29.
Which of the following forms is used to report rents paid over $600 to landlords?
A) Form 1099-R
B) Form 1099-INT
C) Form 1099-MISC
D) Form 1099-G
E) Form 8027
30.
A company must withhold federal income taxes from payments made to independent contractors in which of the following cases?
A) When there is a signed contract between the parties.
B) When the contractor is paid more than $10,000.
C) When the contractor is a corporation.
D) When the contractor has not provided a taxpayer identification number and the contract is $600 or more.
E) All of the above.
Before any federal income taxes may be withheld, there must be, or must have been, an employer-employee relationship.
A) True
B) False
2.
The amount of federal income taxes to be withheld is determined after subtracting from the employee's gross wages any local and state taxes.
A) True
B) False
3.
All taxable noncash fringe benefits received during the year can only be added to the employees' taxable pay on the last payday of the year.
A) True
B) False
4.
A waiter receives cash tips amounting to $120 in July. The waiter must report the amount of the cash tips to the employer by August 10.
A) True
B) False
5.
The payments to a cook employed by a college fraternity are excluded from federal income tax withholding.
A) True
B) False
6.
There is no limit to the amount that an employer can contribute in an employee's SIMPLE retirement account.
A) True
B) False
7.
In the case of a 401(k) plan, employees age 50 or over can shelter an extra $10,000 of their wages from federal income tax.
A) True
B) False
8.
The IRA format of the SIMPLE plan allows employees to make tax-free contributions of up to $11,500.
A) True
B) False
9.
In the IRA form of the Simple Retirement Account, employers must match the employee's contribution, dollar-for-dollar, up to 3% of the employee's compensation.
A) True
B) False
10.
Evers, who works for two employers, is entitled to three personal allowances. Evers must claim the three allowances with each of the two employers during the entire calendar year.
A) True
B) False
11.
After completion of Form W-4, an employer must copy the employee's social security card and place it in the employee's employment file.
A) True
B) False
12.
The special withholding allowance may be claimed only by those employees who do not itemize deductions on their income tax returns.
A) True
B) False
13.
Gere became the father of triplets on June 20. He must file an amended Form W-4 on or before June 30.
A) True
B) False
14.
If married employees do not claim their marital status on Form W-4, the employer must withhold according to the withholding tables for single employees.
A) True
B) False
15.
On August 1, Hunt filed an amended Form W-4 to show a decrease in the number of allowances claimed. Hunt's employer must put the new withholding allowance certificate into effect before the next weekly payday on August 5.
A) True
B) False
16.
An employee submits an invalid Form W-4 to the employer and does not replace it with a valid form. The employer should withhold federal income taxes at the rate for a single person claiming no exemptions.
A) True
B) False
17.
By completing Form W-4P, a person can elect to have no income tax withheld from the annuity amounts the person receives.
A) True
B) False
18.
Of the two main methods of withholding, only the wage-bracket method distinguishes unmarried persons from married persons.
A) True
B) False
19.
The standard deduction varies according to whether the wage-bracket method or the percentage method is used.
A) True
B) False
20.
For state income tax purposes, all states treat 401(k) plan payroll deductions as nontaxable.
A) True
B) False
21.
For which of the following payments is the employer required to withhold federal income taxes?
A) Advances made to sales personnel for traveling expenses
B) Tipped employee's monthly tips of $120
C) Deceased person's wages paid to the estate
D) Minister of Presbyterian church
E) All of the above
22.
Which of the following cannot be included in a cafeteria plan?
A) Health insurance
B) Group-term life insurance (first $50,000 of coverage)
C) Dependent care assistance (first $5,000)
D) Self-insured medical reimbursement plan
E) Educational assistance
23.
A personal allowance:
A) amounted to $2,000 in 2011.
B) may be claimed to exempt a portion of their earnings from withholding.
C) is indexed for inflation every calendar quarter.
D) may be claimed at the same time with each employer for whom an employee is working during the year.
E) for one person is a different amount for a single versus a married taxpayer.
24.
Beech refuses to state her marital status on Form W-4 which she gave to you, the payroll manager, when she was hired. You should:
A) tell Beech that it is OK since you know that she was recently divorced and is reluctant to talk about it.
B) inform Beech that she will have to write the IRS and give her reasons for refusing to state her marital status.
C) tell Beech that you will have to withhold income taxes as if she were married and had claimed one allowance.
D) tell Beech that you will have to withhold income taxes according to the withholding table for a single employee with no allowances.
E) advise Beech to write "It is no business of yours." in the margin of her Form W-4.
25.
Arch gives you an amended Form W-4 dated March 13, 2011, on which he claims two additional withholding allowances. He asks you to refund the excess taxes that were deducted from January 1 to March 13 when Arch claimed only one withholding allowance. You should:
A) repay the overwithheld taxes on Arch's next payday.
B) tell Arch that you will spread out a refund of the overwithheld taxes equally over the next six pays.
C) inform Arch that you are unable to repay the overwithheld taxes that were withheld before March 13 and that the adjustment will have to be made when he files his annual income tax return.
D) tell Arch to write the IRS immediately and ask for a refund of the overwithheld taxes.
E) inform Arch that you will appoint a committee to study his request.
26.
To curb the practice of employees filing false Forms W-4, the IRS requires that an employer submit to the agency a copy of each Form W-4:
A) the IRS has requested in writing.
B) on which an employee, usually earning $180 each week at the time Form W-4 was filed, now claims to be exempt from withholding.
C) on which an employee claims to be single but has 9 withholding allowances.
D) on which a married employee claims no withholding allowances.
E) on which a recently divorced employee claims 5 withholding allowances and authorizes an additional $10 to be withheld each week.
27.
Which of the following forms is used to report the amount of distributions from pension and retirement plans?
A) W-2c
B) 1099-R
C) 1099-PEN
D) W-3p
E) W-4
28.
An employer must file an information return under all of the following conditions except:
A) to report $1,000 of compensation paid to an individual who is not an employee.
B) to report the wages totaling $600 paid to an independent contractor during the calendar year.
C) to report dividends totaling $600 paid to an individual during the calendar year.
D) to report commissions of $500 paid to a self-employed salesman.
E) An information return must be filed under each of the above conditions.
29.
Which of the following forms is used to report rents paid over $600 to landlords?
A) Form 1099-R
B) Form 1099-INT
C) Form 1099-MISC
D) Form 1099-G
E) Form 8027
30.
A company must withhold federal income taxes from payments made to independent contractors in which of the following cases?
A) When there is a signed contract between the parties.
B) When the contractor is paid more than $10,000.
C) When the contractor is a corporation.
D) When the contractor has not provided a taxpayer identification number and the contract is $600 or more.
E) All of the above.