Chapter 3 Test
_____ provide(s) benefits to temporarily disabled employees. A. State disability insurance B. Social Security tax C. Union dues D. Cafeteria plans
A. State disability insurance
The IRS publishes many different withholding tables in Circular E. A. True B. False
A. True
Union dues are considered a voluntary deduction. A. True B. False
A. True
A _____ is a voluntary deduction that can provide a variety of benefits to employees. A. cafeteria plan B. retirement plan C. medical plan D. defined contribution plan
A. cafeteria plan
When an employee reduces his/her withholding allowances, the employee is required to complete a new W-4 Form within ____ days. A. 3 B. 10 C. 15 D. 30
B. 10
Which of the following states does NOT collect state income tax on employee taxable income? A. Virginia B. Tennessee C. California D. Georgia E. None of these options
B. Tennessee
The _____ method is an alternative to the wage-bracket method for determining federal income tax withholding. A. mandatory deduction B. percentage C. Publication 15 D. state income tax withholding
B. percentage
When using the wage-bracket method, the Federal Income Tax Withholding Tables display columns for up to _____ withholding allowances. A. 5 B. 8 C. 10 D. 480
C. 10
Based on the One Withholding Allowance Table, when using the percentage method, an employee who is paid weekly and claims one federal withholding allowance will subtract _____ from taxable pay. A. $350.00 B. $161.50 C. $175.00 D. $80.80
D. $80.80
An updated W-4 Form must be processed by the employer no later than the start of the first payroll period that ends at least _____ days after the employee submits the form. A. 3 B. 10 C. 15 D. 30
D. 30
Which of the following method(s) can be used when determining federal income tax withholding? A. Wage-bracket method B. Percentage method C. Pay-as-you-go method D. Both the wage-bracket method and the percentage method E. All of these options
D. Both the wage-bracket method and the percentage method
Withholding tables used for the wage-bracket method of determining federal income withholding can be found in _____. A. Form I-9 B. The payroll register C. Form W-4 D. Circular E
D. Circular E
What is the time requirement an employee has to increase the number of withholding allowances after getting married? A. 7 days B. 30 days C. 10 days D. There is no time requirement
D. There is no time requirement
