Question 1

If a taxpayer works for more than one employer during the year,how much in FUTA taxes is remitted in the name of the taxpayer?

Accepted Answer

Both employers must remit FUTA taxes they pay to the employee on the first $7,000 of wages earned by the employee at each job. This is because the $7,000 threshold is based on the employee's cumulative wages from all employers during the year. Therefore, each employer must remit FUTA taxes on the first $7,000 of wages earned by the employee, even if the employee has already earned $7,000 at another job.

Question 2

Harry has two jobs.He earns $117,700 from his first job and $10,000 from his second job.How much total FICA withholding will Harry have withheld from his wages from working two jobs?

Accepted Answer

The answer of Harry has two jobs.He earns $117,700 from...

Question 3

Carolyne is single,is paid $1,500 per week,and claims two withholding allowances.What amount of federal income tax is withheld from her gross wages each week using the percentage method?

Accepted Answer

Using the IRS percentage method tables for 2023, for a single person with two withholding allowances, the weekly wage of $1,500 falls into a specific bracket. The calculation involves subtracting the allowance amount from the wage and applying the percentage for that bracket, resulting in $246.50.

Question 4

What is the maximum state unemployment credit allowed for FUTA purposes?

Accepted Answer

The answer of What is the maximum state unemployment credit...

Question 5

If,on any day during the month,an employer who is a monthly schedule depositor accumulates a $100,000 tax liability,the following is true:

Accepted Answer

According to IRS rules, if an employer accumulates a tax liability of $100,000 or more on any day during the month, they become a semiweekly schedule depositor for the remainder of the current year and the entire following year, regardless of their previous deposit schedule. Therefore, the employer must remit the tax by the next banking day and follow the semiweekly deposit schedule going forward. Option D is the only choice that reflects this rule.

Question 6

Esmeralda is single and is paid $759 per week claiming two allowances.What is the amount of federal income tax withheld on Esmeralda's gross wages for the week? Use the wage bracket table in Appendix A at the end of the chapter.

Accepted Answer

Esmeralda's gross income is $759 per week, and she is claiming two allowances. According to the wage bracket table in Appendix A, the federal income tax withheld on her gross wages for the week is $75.

Question 7

Angie earned $120,000 during 2014.She is single,claims two withholding allowances,and is paid monthly.How much federal withholding tax will Angie's employer withhold for 2014?

Accepted Answer

Angie's federal withholding tax for 2014 is $23,932.32. This is calculated using the following formula:Federal withholding tax = (Gross income - (Standard deduction + (Number of withholding allowances x Personal exemption))) x Tax rateAngie's gross income is $120,000. The standard deduction for single filers in 2014 is $6,200. The personal exemption for 2014 is $3,950. Angie claims two withholding allowances, so her total personal exemptions are $7,900.Angie's taxable income is $120,000 - $6,200 - $7,900 = $105,900. The tax rate for taxable income between $9,276 and $37,450 is 15%.Angie's federal withholding tax is $105,900 x 0.15 = $23,932.32.

Question 8

Alexandra earned $200 in tips in June.When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

Accepted Answer

Employers who receive tips from their employees must report these tips to the IRS. Form 4070 is used to report tips, and the employer must receive this form by the 10th of the month following the month in which the tips were received. In this case, since Alexandra earned $200 in tips in June, she must inform her employer of her tips on Form 4070 by July 10.

Question 9

Jack is married,is paid $5,000 biweekly,and claims four allowances.What amount of federal income tax is withheld from his gross wages each pay period?

Accepted Answer

The answer of Jack is married,is paid $5,000 biweekly,and claims...

Question 10

Ben has 2 jobs and both employers withhold FICA taxes.From his first job,Ben earned $85,034 and from his second job,he earned $33,496.How much can Ben claim as additional payment on his Form 1040 as excess social security tax paid in 2014?

Accepted Answer

The maximum amount of wages subject to Social Security tax in 2014 was $117,000. Ben earned a total of $118,530 ($85,034 + $33,496), so he paid $117.05 too much in Social Security taxes.

Question 11

Angie earned $120,000 during 2014.She is single,claims two withholding allowances,and is paid monthly.How much FICA tax must Angie's employer remit to the federal government in 2014?

Accepted Answer

The answer of Angie earned $120,000 during 2014.She is single,claims...

Question 12

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

Accepted Answer

When an employer accumulates $100,000 or more in tax liability on any day during a month, the IRS requires that these taxes be deposited by the next banking day to ensure timely payment.

Question 13

Lynita has two jobs and earned $92,316 from her first job and $25,000 from her second job.How much total FICA taxes will Lynita have withheld from her wages from working two jobs?

Accepted Answer

The answer of Lynita has two jobs and earned $92,316...

Question 14

Ebony earned $86,760 during 2014.She is single,paid semimonthly,and claims one withholding allowance.How much will Ebony's employer withhold from her,in total for each pay period for FICA and federal withholding taxes?

Accepted Answer

The answer of Ebony earned $86,760 during 2014.She is single,paid...

Question 15

Angie earned $120,000 during 2014.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in social security taxes for 2014?

Accepted Answer

Angie's gross income is $120,000. The Social Security tax rate is 6.2%. So, Angie's Social Security tax liability is $120,000 x 6.2% = $7,440. However, Angie is claiming two withholding allowances, which means that her employer will withhold less than this amount. The amount withheld will depend on the specific withholding tables used by Angie's employer. However, it is likely that Angie's employer will withhold around $7,254.00 in Social Security taxes for 2014.

Question 16

Brenda is a self-employed accountant.She has net earnings (profit)from her practice of $74,000.Her self-employment taxes for the year are:

Accepted Answer

Self-employment taxes consist of both the employer and employee portion of Social Security and Medicare taxes. The total self-employment tax rate for 2021 is 15.3%. Brenda's net earnings of $74,000 are subject to this tax. To calculate her self-employment tax, we multiply her net earnings by 15.3%: $74,000 x 0.153 = $11,322. However, Brenda can deduct one-half of the self-employment tax as an adjustment to income. So her final self-employment tax for the year is $11,322 / 2 = $5,661. This brings her total self-employment tax to $10,455.87, which is answer choice C.

Question 17

Angie earned $120,000 during 2014.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in Medicare taxes for 2014?

Accepted Answer

The answer of Angie earned $120,000 during 2014.She is single,claims...

Question 18

Which of the following statements regarding the lookback period for 2014 is correct?

Accepted Answer

The lookback period for 2014 is the year prior to the measurement year, which is 2013. Therefore, the correct choice is the four quarters starting July 1, 2012 through June 30, 2013.

Question 19

Daniel is a computer technical support representative earning $95,000 per year and also has a sole proprietor consulting business where he earned $28,000 for 2014.How much of his total earnings are subject to self-employment tax for 2014?

Accepted Answer

The answer of Daniel is a computer technical support representative...

Question 20

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

Accepted Answer

Semiweekly schedule depositors must deposit federal taxes withheld for pay periods ending on Wednesday, Thursday, or Friday by the following Wednesday. This means the employer has three business days to make the deposit, excluding the day of the payday, before the deposit is due. Therefore, for a payroll period ending and paid on a Friday, the deposit would be due on the following Wednesday.

Quiz 10: Payroll Taxes

If a taxpayer works for more than one employer during the year,how much in FUTA taxes is remitted in the name of the taxpayer?

Harry has two jobs.He earns $117,700 from his first job and $10,000 from his second job.How much total FICA withholding will Harry have withheld from his wages from working two jobs?

Carolyne is single,is paid $1,500 per week,and claims two withholding allowances.What amount of federal income tax is withheld from her gross wages each week using the percentage method?

What is the maximum state unemployment credit allowed for FUTA purposes?

If,on any day during the month,an employer who is a monthly schedule depositor accumulates a $100,000 tax liability,the following is true:

Esmeralda is single and is paid $759 per week claiming two allowances.What is the amount of federal income tax withheld on Esmeralda's gross wages for the week? Use the wage bracket table in Appendix A at the end of the chapter.

Angie earned $120,000 during 2014.She is single,claims two withholding allowances,and is paid monthly.How much federal withholding tax will Angie's employer withhold for 2014?

Alexandra earned $200 in tips in June.When must she inform her employer of her tips on Form 4070 for federal income tax and FICA withholding purposes?

Jack is married,is paid $5,000 biweekly,and claims four allowances.What amount of federal income tax is withheld from his gross wages each pay period?

Ben has 2 jobs and both employers withhold FICA taxes.From his first job,Ben earned $85,034 and from his second job,he earned $33,496.How much can Ben claim as additional payment on his Form 1040 as excess social security tax paid in 2014?

Angie earned $120,000 during 2014.She is single,claims two withholding allowances,and is paid monthly.How much FICA tax must Angie's employer remit to the federal government in 2014?

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

Lynita has two jobs and earned $92,316 from her first job and $25,000 from her second job.How much total FICA taxes will Lynita have withheld from her wages from working two jobs?

Ebony earned $86,760 during 2014.She is single,paid semimonthly,and claims one withholding allowance.How much will Ebony's employer withhold from her,in total for each pay period for FICA and federal withholding taxes?

Angie earned $120,000 during 2014.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in social security taxes for 2014?

Brenda is a self-employed accountant.She has net earnings (profit) from her practice of $74,000.Her self-employment taxes for the year are:

Angie earned $120,000 during 2014.She is single,claims two withholding allowances,and is paid monthly.How much will Angie's employer withhold in Medicare taxes for 2014?

Which of the following statements regarding the lookback period for 2014 is correct?

Daniel is a computer technical support representative earning $95,000 per year and also has a sole proprietor consulting business where he earned $28,000 for 2014.How much of his total earnings are subject to self-employment tax for 2014?

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