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Multiple Choice Quiz
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1.
Carolyne is married, is paid $1,500 per week, and claims 2 withholding allowances. What amount of federal income tax is withheld from her gross wages each week using the percentage method?
A)$168.56
B)$175.07
C)$266.57
D)$343.27
2.
Jack is single, is paid $5,000 bi-weekly, and claims four allowances. What amount of federal income tax is withheld from his gross wages each pay period?
A)$988.29
B)$1,009.29
C)$1,019.89
D)$1,142.29
3.
Angie earned $105,000 during 2006. She is single, claims two withholding allowances, and is paid monthly. How much will Angie's employer withhold in social security taxes for 2006?
A)$5,728.80
B)$5,840.40
C)$6,100.80
D)$6,510.00
4.
Angie earned $105,000 during 2006. She is single, claims two withholding allowances, and is paid monthly. How much will Angie's employer withhold in Medicare taxes for 2006?
A)$1,339.80
B)$1,365.90
C)$1,426.80
D)$1,522.50
5.
Angie earned $105,000 during 2006. 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 2006?
A)$14,137.20
B)$14,412.60
C)$14,725.80
D)$16,065.00
6.
Angie earned $105,000 during 2006. She is single, claims two withholding allowances, and is paid monthly. How much federal withholding tax will Angie's employer withhold for 2006?
A)$15,850.80
B)$16,676.00
C)$21,265.16
D)$23,213.50
7.
Ben has 2 jobs and both employers withhold FICA taxes. From his first job, Ben earned $80,000 and from his second job, he earned $20,000. How much can Ben claim as additional payment on his Form 1040 as excess social security tax paid in 2006?
A)$0
B)$359.60
C)$434.70
D)$443.70
8.
A semiweekly depositor's payroll ends on Friday, July 28, 2006. The employer must deposit the federal taxes paid for this pay period on or before:
A)The following Wednesday
B)The following Monday
C)The following Friday
D)The last day of the month
9.
If, on any day during the month, an employer accumulates $100,000 or more in tax liability, the taxes must be deposited:
A)Before the close of the business day in which the liability occurs.
B)By the last day of the month if the employer is a monthly depositor.
C)By either the following Wednesday or Friday if the employer is a semiweekly depositor.
D)By the next banking day.
10.
Employers are required to deposit FUTA taxes when their liability exceeds:
A)$100
B)$500
C)$1,000
D)$2,500
11.
Sandy is a self-employed health information coder. She has net self-employment earnings from her business of $33,500. Her self-employment taxes for the year are:
A)$2,562.75
B)$4,737.40
C)$4,733.40
D)$5,125.50
12.
Kim works part-time for Medical Assistants, Inc. and earned $6,385 for 2006. What amount of FUTA tax must her employer remit to the IRS? Assume her employer receives the maximum credit for state unemployment taxes.
A)$34.48
B)$39.58
C)$51.08
D)$51.80
13.
An employer must send Copy A of Form W-2 with the W-3 transmittal form for each employee paid in 2006 to the Social Security Administration no later than:
A)January 31, 2007
B)February 1, 2007
C)February 15, 2007
D)February 28, 2007
14.
A taxpayer had AGI of $300,000 in 2006 and AGI of $250,000 in 2005. When filing her 2006 return, she expects her unpaid tax liability to be at least $1,000. She must make estimated payments equal to the smaller of 90% of the tax shown on her 2006 return or
A)110% of the tax on her 2005 return because 2006 AGI was more than $100,000.
B)100% of the tax on her 2005 return regardless of 2006 AGI.
C)100% of the tax on the 2005 return because 2006 AGI was more than $100,000.
D)110% of the tax on the 2005 return because 2006 AGI was greater than 2005 AGI.
15.
Kathy received a commission of $12,000 from her employer. How is federal withholding tax calculated on this payment if she also earns semimonthly wages of $2,500?
A)If taxes have already been withheld from Kathy's wages separately, the commission is added to the wages and federal taxes are withheld at this combined amount. Any excess taxes withheld this pay period will be refunded to Kathy on her next paycheck.
B)If taxes have already been withheld from Kathy's wages, the commission is taxed at a flat rate of 25%
C)If taxes have not already been withheld from Kathy's regular wage, the commission is added to the wages and withheld at the rate of 25% regardless of her withholding allowances.
D)If taxes have already been withheld from Kathy's wages separately, the commission is subject to backup withholding of 28%





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