Question 1

The original copy of all Forms W-2 and Form W-3 must be filed with the Social Security Administration by January 31 of the year following the calendar year in which the wages were paid,regardless of the tax year of the employer.

Accepted Answer

This is the deadline for filing Forms W-2 and W-3 with the Social Security Administration, as stated by the IRS.

Question 2

Employer deposits of withheld taxes may be made to any bank.

Accepted Answer

Employer deposits of withheld taxes must be made to an authorized financial institution, which can include a bank, credit union, or other similar institution. However, it must be authorized by the Federal Reserve or designated as an authorized financial institution by the IRS.

Question 3

When required,gambling winnings are reported by the gambling establishment on Form 1099-MISC.

Accepted Answer

Gambling winnings are reported by the gambling establishment on Form W-2G, not Form 1099-MISC. Form W-2G is specifically used for reporting gambling winnings and any federal income tax withheld from those winnings.

Question 4

Dividend income is not subject to the self-employment tax.

Accepted Answer

Dividend income is not earned through self-employment, so it is not subject to the self-employment tax. However, it may be subject to other taxes such as income tax, capital gains tax, or the net investment income tax.

Question 5

In determining an employee's FICA tax to be withheld,the maximum amount of wages subject to FICA must be reduced by the taxpayer's self-employment earnings.

Accepted Answer

The maximum amount of wages subject to FICA is not reduced by the taxpayer's self-employment earnings. Self-employment earnings are subject to the self-employment tax, which is calculated separately from FICA taxes.

Question 6

Which of the following forms should be used by a company to report a payment of $1,500 to a computer consultant who is not an employee of the company?

Accepted Answer

Form 1099-MISC is used to report payments of $600 or more made to non-employees, including independent contractors and freelancers. Since the payment to the computer consultant is $1,500 and they are not an employee of the company, Form 1099-MISC is the appropriate form to use to report the payment. Option A is for reporting interest income, Option B is for employee withholding, Option C is for reporting wages to employees, and Option D is for reporting dividend income. None of these forms are relevant for reporting payments to non-employees.

Question 7

Which one of the following forms must an employer provide to his employee by January 31 of the following year?

Accepted Answer

An employer must provide their employee with a W-2 form by January 31 of the following year, which outlines the employee's annual wages, taxes withheld, and other information needed for tax purposes. W-3 is a summary form of all W-2s issued by the employer, W-4 is filled out by the employee to determine withholding allowances, 941 is an employer's quarterly tax form, and 1040 is an individual tax return form.

Question 8

Employers must provide employees with their Form W-2 by February 15 of the year following the calendar year of payment of the wages.

Accepted Answer

Employers must provide employees with their Form W-2 by January 31 of the year following the calendar year of payment of the wages.

Question 9

Gambling winnings must be reported to the IRS,but withholding of taxes on winnings is never required.

Accepted Answer

Withholding of taxes on gambling winnings is required under certain circumstances, such as when the winnings exceed $5,000 and are subject to federal income tax withholding. It is always best to consult a tax professional for guidance on reporting and withholding requirements for gambling winnings.

Question 10

For each of the following payments,indicate the form (Form W-2,W-4,W-2G,1099-B,1099-DIV,1099-INT,1099-MISC,or 1099-R)that should be used to report the payment.
a.Dividends from a mutual fund
b.Las Vegas gambling winnings
c.Interest paid by a bank
d.Payment of salary and commissions to an employee
e.Distribution from an IRA account

Accepted Answer

The answer of For each of the following payments,indicate the...

Question 11

Which one of the following payroll tax deposit schedules is not a rule that applies for a class of employers?

Accepted Answer

The eight-day deposit rule does not exist as a rule for payroll tax deposit schedules. Employers are generally required to follow either the monthly, semi-weekly, next-day, or yearly deposit schedules, depending on the amount of their tax liability and other specific criteria.

Question 12

Richard is employed by a major defense contractor and earns $156,000 in 2017.Calculate:
a.The amount of Social Security tax withheld from his income
b.The amount of Medicare tax withheld from his income
c.The amount of FUTA withheld from his income

Accepted Answer

The answer of Richard is employed by a major defense...

Question 13

Dividends paid to a shareholder by a corporation should be reported on which of the following forms?

Accepted Answer

Dividends paid to a shareholder are reported on Form 1099-DIV. This form shows the total amount of dividends paid to the shareholder during the tax year and must be reported on the shareholder's individual tax return.

Question 14

The Pear Corporation pays its employees every 2 weeks.During the look-back period,in each pay period the total withholding and FICA tax (employees' and employer's share)amounted to $750.How often must the Pear Corporation deposit payroll taxes?

Accepted Answer

The answer of The Pear Corporation pays its employees every...

Question 15

For 2017,the maximum base amount for computing the Medicare portion of the self-employment tax is $150,000.

Accepted Answer

There is no maximum base amount for the Medicare portion of the self-employment tax; it applies to all net earnings.

Question 16

Form 1099-DIV is an information return used to show the payment of:

Accepted Answer

Form 1099-DIV is used to report dividend payments to investors.

Question 17

Which of the following forms is used by an employer to report quarterly wages and federal payroll tax withholdings and deposits?

Accepted Answer

Form 941 is used by an employer to report quarterly wages and federal payroll tax withholdings and deposits. Form 940 is used to report annual federal unemployment tax payments, Form 1099 is used to report non-employee compensation, and Form W-2 is used to report employee wages and taxes withheld at the end of the year.

Question 18

Which of the following statements is true with regard to the reimbursement of employee business expenses?

Accepted Answer

Reimbursements received by an employee under a plan which contains a requirement to return excess amounts, and the employee does so on a timely basis, are excluded from the definition of wages subject to withholding. This means that if an employee is required to return any excess reimbursements received, the amounts are not subject to federal income tax withholding.

Question 19

Which of the following items may be subject to the self-employment tax?

Accepted Answer

A partner's distributive share of partnership income is subject to the self-employment tax. The other options, including dividend income, capital gains and interest income are not subject to the self-employment tax.

Question 20

Provide answers to the following questions:
​
a.What form does an employer use to report wages to an employee?
b.When must the employer give this form to the employee?
c.What form does an employer use to report wages to the Social Security Administration?
d.When must the employer file the form with the Social Security Administration?

Accepted Answer

The answer of Provide answers to the following questions:
​
a.What form...

Quiz 9: Withholding Estimated Payments and Payroll Taxes