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Multiple Choice Quiz
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1
An employee who works for multiple employers will likely be under withheld for federal income tax purposes and can owe additional taxes when filing his/her return.
A)True
B)False
2
When calculating self-employment taxes from a taxpayer who also receives wages from a salaried job, the earnings from self-employment are considered first in calculating the ceiling amount for OASDI and Medicare.
A)True
B)False
3
The amount withheld from supplemental payments depends on whether the employer accounts for the payment separate from regular wages.
A)True
B)False
4
Generally, an employer must withhold 28% of certain taxable payments if the payee fails to furnish them with a correct taxpayer identification number.
A)True
B)False
5
Form 1040-ES is filed along with the Form 1040 when a taxpayer makes estimated payments during the year.
A)True
B)False
6
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)$168.46
B)$175.07
C)$266.57
D)$343.27
7
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)$1,006.07
C)$1,009.29
D)$1,019.89
8
Angie earned $105,000 during 2007. She is single, claims two withholding allowances, and is paid monthly. How much will Angie's employer withhold in social security taxes for 2007?
A)$5,728.80
B)$5,840.40
C)$6,045.00
D)$6,510.00
9
Angie earned $105,000 during 2007. She is single, claims two withholding allowances, and is paid monthly. How much will Angie's employer withhold in Medicare taxes for 2007?
A)$1,339.80
B)$1,413.75
C)$1,426.80
D)$1,522.50
10
Angie earned $105,000 during 2007. 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 2007?
A)$14,917.50
B)$15,135.00
C)$15,847.50
D)$16,065.00
11
Angie earned $105,000 during 2007. She is single, claims two withholding allowances, and is paid monthly. How much federal withholding tax will Angie's employer withhold for 2007?
A)$15,512.50
B)$16,676.00
C)$21,061.20
D)$22,964.75
12
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 $30,000. How much can Ben claim as additional payment on his Form 1040 as excess social security tax paid in 2007?
A)$0
B)$155.00
C)$775.00
D)$979.60
13
A semiweekly depositor's payroll ends on Friday, July 27, 2007. 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
14
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.
15
Employers are required to deposit FUTA taxes when their liability exceeds:
A)$100
B)$500
C)$1,000
D)$2,500
16
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
17
Kim works part-time for Medical Assistants, Inc. and earned $6,385 for 2007. 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
18
An employer must send Copy A of Form W-2 with the W-3 transmittal form for each employee paid in 2007 to the Social Security Administration no later than:
A)January 31, 2008
B)February 1, 2008
C)February 28, 2008
D)February 29, 2008
19
A taxpayer had AGI of $300,000 in 2007 and AGI of $250,000 in 2006. When filing her 2007 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 2007 return or
A)110% of the tax on her 2006 return because 2007 AGI was more than $100,000.
B)100% of the tax on her 2006 return regardless of 2007 AGI.
C)100% of the tax on the 2006 return because 2007 AGI was more than $100,000.
D)110% of the tax on the 2006 return because 2007 AGI was greater than 2006 AGI.
20
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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