Payroll Accounting Final Exam
The number of withholding allowances claimed by an employee is set forth on Form W-2.
True
False correct answersFalse
Both the percentage method and the wage-bracket method of withholding have each of the following
characteristics except
unmarried persons are distinguished from married persons
a table of allowances values is used
employees are given the full benefit of the allowances they claim
tables and wage-bracket charts are used to determine the amount withheld
the standard deduction is taken into account correct answersa table of allowances values is used
The withholding on vacation wage payments is
a flat 15%
based on the total amount of the wage payment plus the vacation pay
taxed as though it were a regular payment for the periods occurring during the vacation period
tax-free
a flat 22% correct answerstaxed as though it were a regular payment for the periods occurring during the
vacation period
A publisher is preparing information returns to report the royalties paid to authors (nonemployees)
during the prior calendar year. The proper information return to be completed is
Form W-2
Form W-3
Form 1099-MISC
Form 1099-DIV
any of the above forms correct answersForm 1099-MISC
, Which of the following fringe benefits is taxable?
membership in a country club
use of on-premise athletic facility
job-placement assistance
qualified employee discounts
reduced tuition for education correct answersmembership in a country club
Not-for-profit corporations that are exempt from federal income taxes do not withhold federal income
taxes from their employee's pay.
True
False correct answersFalse
Employers cannot send Forms W-2 to employees electronically.
True
False correct answersFalse
Employees who are receiving over $1 million dollars in supplemental wages for the year will have a 37%
withholding rate apply to the supplemental payments in excess of $1 million dollars.
True
False correct answersTrue
Withholding allowance certificates must be retained by employers for as long as the certificates are in
effect and for four years thereafter.
True
False correct answersTrue
Cash tips of $20 dollars or more in a month must be reported to the employer by the tipped employee
by the end of the following month.
True
The number of withholding allowances claimed by an employee is set forth on Form W-2.
True
False correct answersFalse
Both the percentage method and the wage-bracket method of withholding have each of the following
characteristics except
unmarried persons are distinguished from married persons
a table of allowances values is used
employees are given the full benefit of the allowances they claim
tables and wage-bracket charts are used to determine the amount withheld
the standard deduction is taken into account correct answersa table of allowances values is used
The withholding on vacation wage payments is
a flat 15%
based on the total amount of the wage payment plus the vacation pay
taxed as though it were a regular payment for the periods occurring during the vacation period
tax-free
a flat 22% correct answerstaxed as though it were a regular payment for the periods occurring during the
vacation period
A publisher is preparing information returns to report the royalties paid to authors (nonemployees)
during the prior calendar year. The proper information return to be completed is
Form W-2
Form W-3
Form 1099-MISC
Form 1099-DIV
any of the above forms correct answersForm 1099-MISC
, Which of the following fringe benefits is taxable?
membership in a country club
use of on-premise athletic facility
job-placement assistance
qualified employee discounts
reduced tuition for education correct answersmembership in a country club
Not-for-profit corporations that are exempt from federal income taxes do not withhold federal income
taxes from their employee's pay.
True
False correct answersFalse
Employers cannot send Forms W-2 to employees electronically.
True
False correct answersFalse
Employees who are receiving over $1 million dollars in supplemental wages for the year will have a 37%
withholding rate apply to the supplemental payments in excess of $1 million dollars.
True
False correct answersTrue
Withholding allowance certificates must be retained by employers for as long as the certificates are in
effect and for four years thereafter.
True
False correct answersTrue
Cash tips of $20 dollars or more in a month must be reported to the employer by the tipped employee
by the end of the following month.
True
