Question 1

Which of the following noncash fringe benefits does not represent taxable income subject to federal income tax withholding?

Accepted Answer

A)  Flight on employer-provided airline
B)  Personal use of company car
C)  Sick pay
D)  Employer-paid membership to a country club
E)  All of the above are taxable.F) C) and D)
G) A) and B)

Question 2

Under the federal income tax withholding law, which of the following is not defined as an employee?

Accepted Answer

A)  Partner who draws compensation for services rendered the partnership
B)  General manager, age 66
C)  Payroll clerk hired one week ago
D)  Governor of the state of Florida
E)  Secretary employed by a not-for-profit corporationF) A) and D)
G) D) and E)

Question 3

Evers, who works for two employers, is entitled to three personal allowances.Evers must claim the three allowances with each of the two employers during the entire calendar year.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips?

Accepted Answer

A)  Tips amounting to $10 or more in a calendar month must be re- ported by tipped employees to their employers.
B)  The withholding of federal income taxes on employees' reported tip income is made from the amount of tips reported by employees.
C)  When employees report taxable tips in connection with employment in which they also receive regular wages, the amount of tax to be withheld on the tips is computed as if the tips were a supplemental wage payment.
D)  Employers do not withhold FICA taxes on the tipped employees' reported tip income.
E)  None of the above statements is correct.F) A) and B)
G) B) and D)

Question 5

For which of the following payments is the employer required to withhold federal income taxes?

Accepted Answer

A)  Advances made to sales personnel for traveling expenses
B)  Tipped employee's monthly tips of $120
C)  Deceased person's wages paid to the estate
D)  Minister of Presbyterian church
E)  All of the aboveF) B) and C)
G) C) and D)

Question 6

After completion of Form W-4, an employer must copy the employee's social security card and place it in the employee's employment file.

Accepted Answer

A) True 
 B)False

Question 7

There is no limit to the amount that an employer can contribute in an employee's SIMPLE retirement account.

Accepted Answer

A) True 
 B)False

Question 8

An employer is required to submit a copy of the employee's Form W-4 to the IRS if the employee has claimed 15 or more withholding allowances.

Accepted Answer

A) True 
 B)False

Question 9

All of the following are properly defined as wages subject to the withholding of federal income taxes except:

Accepted Answer

A)  year-end bonus.
B)  kitchen appliances given by manufacturer in lieu of cash wages.
C)  dismissal payment.
D)  vacation pay.
E)  payments made under worker's compensation law.F) None of the above
G) A) and B)

Question 10

Since not-for-profit corporations are exempt from federal income taxes, they are not defined as employers under the federal income tax withholding law.

Accepted Answer

A) True 
 B)False

Exam 4: Income Tax Withholding

An employer is required to submit a copy of the employee's Form W-4 to the IRS if the employee has claimed 15 or more withholding allowances.

Correct Answer
verified

For which of the following payments is the employer required to withhold federal income taxes?

Correct Answer
verified

Since not-for-profit corporations are exempt from federal income taxes, they are not defined as employers under the federal income tax withholding law.

Correct Answer
verified

There is no limit to the amount that an employer can contribute in an employee's SIMPLE retirement account.

Correct Answer
verified

Evers, who works for two employers, is entitled to three personal allowances.Evers must claim the three allowances with each of the two employers during the entire calendar year.

Correct Answer
verified

All of the following are properly defined as wages subject to the withholding of federal income taxes except:

Correct Answer
verified

After completion of Form W-4, an employer must copy the employee's social security card and place it in the employee's employment file.

Correct Answer
verified

Which of the following noncash fringe benefits does not represent taxable income subject to federal income tax withholding?

Correct Answer
verified

Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips?

Correct Answer
verified

Under the federal income tax withholding law, which of the following is not defined as an employee?

Correct Answer
verified

Exam 4: Income Tax Withholding

An employer is required to submit a copy of the employee's Form W-4 to the IRS if the employee has claimed 15 or more withholding allowances.

Correct AnswerverifiedShow Answer

For which of the following payments is the employer required to withhold federal income taxes?

Correct AnswerverifiedShow Answer

Since not-for-profit corporations are exempt from federal income taxes, they are not defined as employers under the federal income tax withholding law.

Correct AnswerverifiedShow Answer

There is no limit to the amount that an employer can contribute in an employee's SIMPLE retirement account.

Correct AnswerverifiedShow Answer

Evers, who works for two employers, is entitled to three personal allowances.Evers must claim the three allowances with each of the two employers during the entire calendar year.

Correct AnswerverifiedShow Answer

All of the following are properly defined as wages subject to the withholding of federal income taxes except:

Correct AnswerverifiedShow Answer

After completion of Form W-4, an employer must copy the employee's social security card and place it in the employee's employment file.

Correct AnswerverifiedShow Answer

Which of the following noncash fringe benefits does not represent taxable income subject to federal income tax withholding?

Correct AnswerverifiedShow Answer

Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips?

Correct AnswerverifiedShow Answer

Under the federal income tax withholding law, which of the following is not defined as an employee?

Correct AnswerverifiedShow Answer

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