Question 1

The payroll period for a semiweekly schedule depositor ends on and is paid on Friday,July 10^th.The employer must deposit the federal taxes withheld for this pay period on or before:

Accepted Answer

As a semiweekly schedule depositor, the employer must deposit the federal taxes withheld on or before the Wednesday following the payroll period end date. In this case, the payroll period ends on July 10th (Friday), so the taxes must be deposited on or before July 15th (Wednesday) to meet the deposit deadline. Choice A and B are incorrect because they do not follow the semiweekly deposit schedule. Choice D is incorrect because it applies to monthly depositors, not semiweekly depositors.

Question 2

Form 941 is prepared by the employer on a quarterly basis to record all of the following payroll taxes except:

Accepted Answer

Form 941 is used to record and report on Social Security tax, Medicare tax, and Federal withholding tax. It does not include the Federal Unemployment (FUTA) tax, which is reported separately on Form 940 annually.

Question 3

The Anderson Company started its business on August 3^rd.On August 14^th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 28,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?

Accepted Answer

The Anderson Company is treated as a semiweekly payroll tax depositor because its accumulated tax liability for the month (August) is $100,000 or more. Once this threshold is reached, the company must deposit its payroll taxes on a semiweekly basis for the remainder of the year, regardless of its tax liability in subsequent months.

Question 4

Unless specifically excluded,what is the penalty for sending a required tax payment directly to the Internal Revenue Service?

Accepted Answer

The answer of Unless specifically excluded,what is the penalty for...

Question 5

Mahmet earned wages of $118,700 during 2016.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in social security taxes for the year? Round your answer to 2 decimal places.)

Accepted Answer

Mahmet's social security tax is 6.2% of his wages, which is $118,700 x 0.062 = $7,359.40.

Question 6

Loretta has two jobs.She earned $120,000 from her first job and $20,000 from her second job.How much total FICA taxes will Loretta have withheld from her wages from working two jobs?

Accepted Answer

The FICA tax rate for social security is 6.2% on the first $118,500 of wages and the FICA tax rate for Medicare is 1.45% on all wages. 
For Loretta's first job, the social security tax withheld will be 6.2%(118,500) = $7,347. The Medicare tax withheld will be 1.45%(120,000) = $1,740.
For Loretta's second job, the social security tax withheld will be 6.2%(20,000) = $1,240. The Medicare tax withheld will be 1.45%(20,000) = $290.
Therefore, the total FICA tax withheld will be $7,347 + $1,740 + $1,240 + $290 = $10,617.00.

Question 7

Danita is married and is paid $4,875 semimonthly.She claims four withholding allowances.What amount of federal income tax will be withheld from Danita's gross wages for each payroll period? Round your answer to 2 decimal places.)

Accepted Answer

The answer of Danita is married and is paid $4,875...

Question 8

Arlene is a college professor earning $90,000 and also has a sole proprietor consulting practice where she earned $28,000 for 2016.How much of her total earnings are subject to self-employment tax for 2016?

Accepted Answer

The correct answer is A. The total earnings subject to self-employment tax are $25,858. This is calculated by taking the total earnings from the consulting practice ($28,000) and subtracting the amount of the deduction for one-half of self-employment tax ($2,142).

Question 9

Which of the following conditions requires an employer to use the electronic deposit requirement?

Accepted Answer

The IRS requires all employers to use electronic funds transfer to make all federal tax deposits, regardless of the amount.

Question 10

Mahmet earned wages of $118,700 during 2016.He is single and claims two withholding allowances.How much FICA tax is Mahmet's employer responsible to remit in 2016?

Accepted Answer

Mahmet's FICA tax is 7.65% of his wages, or $18,136.30.

Question 11

Employees claim withholding allowances on Form W-4.For each withholding allowance claimed,their withholding base is reduced by what amount for calendar year 2016?

Accepted Answer

For the calendar year 2016, each withholding allowance reduces the withholding base by $4,050. Therefore, option A is the correct answer.

Question 12

In a large food or beverage establishment,on what form or schedule is any tip shortfall from a directly tipped employee recorded?

Accepted Answer

Form 8027 is used by large food or beverage establishments to report on their total sales, non-tipped employees, and the tip income of directly tipped employees. If the tips reported by the employee are less than 8% of their sales, the employer must allocate the difference and report it on Form 8027 as a tip shortfall. This helps the IRS ensure that employees are reporting their tips accurately and that the employer is complying with tip reporting regulations.

Question 13

Mahmet earned wages of $118,700 during 2016.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in Medicare taxes for the year?

Accepted Answer

The answer of Mahmet earned wages of $118,700 during 2016.He...

Question 14

Employers are required to deposit FUTA taxes when their liability for a quarter exceeds:

Accepted Answer

Employers are required to deposit FUTA taxes when their liability for a quarter exceeds $500.

Question 15

Employers with a payroll tax liability of less than $2,500 at the end of any quarter pay their tax liability:

Accepted Answer

Employers with a payroll tax liability of less than $2,500 at the end of any quarter can pay their tax liability directly to the Internal Revenue Service when they file Form 941.

Question 16

If on any day during the month,an employer accumulates $100,000 or more in tax liability,the taxes must be deposited:

Accepted Answer

If an employer accumulates $100,000 or more in tax liability on any day, the IRS requires that the taxes be deposited by the next banking day, regardless of the employer's regular deposit schedule.

Question 17

Sergio is single,is paid $2,750 per week,and claims two withholding allowance.What is the amount of federal income tax withheld from Sergio's gross wages for the week using the percentage method? Round your answer to 2 decimal places.)

Accepted Answer

Sergio is single and claims two withholding allowances. Using the percentage method, the amount of federal income tax withheld from his gross wages of $2,750 per week is $580.40.

Question 18

Eva earned $89 in tips in March.When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

Accepted Answer

According to the IRS, employees must report their tips to their employer by the 10th day of the month following the month in which the tips were received. Since Eva earned $89 in tips in March, she must inform her employer of her tips on Form 4070 by April 10th for federal income tax and FICA (Social Security and Medicare) withholding purposes.

Question 19

Bubba earned a total of $221,100 for 2016.How much FICA tax is his employer required to withhold from Bubba's paychecks for the year?

Accepted Answer

The answer of Bubba earned a total of $221,100 for...

Question 20

Marci has two jobs and both employers withheld FICA tax.From her first job,she earned $100,600 and from her second job she earned $18,300.How much can Marci claim on her Form 1040 as excess social security tax paid in 2016?

Accepted Answer

The social security tax rate for both the employee and employer is 6.2% on wages up to $127,200 for 2016. Since Marci has two jobs and both of her employers withheld social security tax from her wages, she may have overpaid social security tax. 
The maximum amount of social security tax that she should have paid in 2016 is $7,347.60 (6.2% of $118,500, the maximum taxable wage base for social security in 2016). However, her total wages from both jobs was $118,900 ($100,600 + $18,300), which means that she paid too much social security tax on $400 of earnings ($118,900 - $118,500). 
Thus, the excess social security tax paid is $24.80 (6.2% of $400), which Marci can claim on her Form 1040. Therefore, the correct answer is B) $24.80.

Quiz 10: Payroll Taxes

The payroll period for a semiweekly schedule depositor ends on and is paid on Friday,July 10th.The employer must deposit the federal taxes withheld for this pay period on or before: