FPC CHAPTER 2 EXAM QUESTIONS AND ANSWERS 100% CORRECT
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Module
FPC
Institution
FPC
FPC CHAPTER 2 EXAM QUESTIONS AND ANSWERS 100% CORRECT
When making a supplemental wage payment to an employee whose YTD supplemental wages exceed $1,000,000.00, what tax rate is used to calculate federal income tax withholding?
A. 7.65%
B. 25%
C. 35%
D. 39.6% - Answer-D. 39.6%
Whic...
FPC CHAPTER 2 EXAM QUESTIONS
AND ANSWERS 100% CORRECT
When making a supplemental wage payment to an employee whose YTD supplemental
wages exceed $1,000,000.00, what tax rate is used to calculate federal income tax
withholding?
A. 7.65%
B. 25%
C. 35%
D. 39.6% - Answer-D. 39.6%
Which of the following information is required to correctly calculate federal income tax
withholding?
A. Marital status
B. Tax levies in effect
C. After-tax deductions
D. Take-home pay - Answer-A. Marital status
Using the Percentage Method, calculate the federal income tax withholding based on
the following information. An employee earns $2,600.00 semimonthly and claims
married, 2 allowance(s). - Answer-247.31.
Using the Wage-Bracket Method, calculate the employee's federal income tax
withholding based on the following information. An employee earns $840.00
semimonthly and claims single, 3 allowance(s). - Answer-25.00
Employers may use any of the following methods to withhold federal income tax from
noncash benefits EXCEPT:
A. employee's chosen method.
B. optional flat rate.
C. mandatory flat rate.
D. aggregate. - Answer-A. employee's chosen method.
Using the Optional Flat Rate Method and the Wage-Bracket Method, calculate the
federal income tax withholding based on the following information. An employee earns
$1,430.00 semimonthly and is paid a $100.00 production bonus. The employee has
, received no other supplemental wages during the year and claims single, 0
allowance(s). - Answer-206.00
Using the Optional Flat Rate Method, calculate the federal income tax withholding
based on an employee's supplemental wage payment of $200,000.00. The employee
has received $500,000.00 in supplemental wages during the year. - Answer-answer:
50,000
optional late rate method: 25%
What is the definition of imputed income? - Answer-Taxable value of noncash benefits
the employee receives
IRS regulations define all of the following payments as supplemental payments
EXCEPT:
A. bonus.
B. overtime pay.
C. base salary.
D. severance. - Answer-C. base salary.
Using the Optional Flat Rate Method, calculate the federal income tax withholding
based on the following information: An employee earns a bonus of $317.00 and has
total YTD wages of $20,000.00. - Answer-flat rate method: 25%
317x25%=79.25
An employee is paid semimonthly and claims married, 2 allowance(s). Using the
Percentage Method, calculate the value of the employee's withholding allowances each
pay period. - Answer-Correct. You answered 337.60
When using the Optional Flat Rate Method, by what percentage is a bonus divided
when grossing up for employees with YTD wages less than $118,500.00 with no state
or local withholding taxes - Answer-flat rate: 25%
SS: 6.2
Medicare: 1.45
An employee earns $1,700.00 biweekly and has $25,500.00 in total YTD wages.
Calculate the social security and Medicare taxes to be withheld from the employee's
biweekly pay. - Answer-130.05
A tipped employee is paid $4.43 per hour and receives $152.76 per week in tips. The
employee worked 23 hours last week. How much of the tipped employee's
compensation is subject to federal income, social security, and Medicare tax
withholding? - Answer-all of it
254.65
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