Chapter 5
How does an employer file an amended Form 940? a.Complete a new Form 940, check the "Amended" box, and include an explanation for the refiling. b.Revised the original Form 940 and include an explanation for the refiling. c.Revise the original Form 940 and write "Amended" at the top. d.Complete a new Form 940 and include an explanation for the refiling.
A
How often do employers file wage and contribution reports with their states? a.Quarterly b.Twice per year c.Annually d.Monthly
A
In Part 2 of Form 940, contributions made on a pretax basis to a cafeteria plan are included on: a.Line 4 and Line 6 as part of the subtotal b.Line 5 c.Line 7 and Line 9 as part of the subtotal d.Line 8
A
For a company that has ceased operations during the year, the employer must: a.Check the appropriate "Type of Return" box on Form 940. b.Attach a statement giving the name and address of the person(s) in charge of the required payroll records. c.Both of these choices are correct. d.None of these choices are correct.
C
Under FUTA, a person or a business is considered to be an employer for which of the below mentioned conditions? a.Pays wages of $1,500 or more during any calendar quarter in the current or preceding calendar year. b.Employs one or more persons, on at least some portion of one day, in each of 20 or more calendar weeks during the current or preceding taxable year. c.Either of these choices is correct. d.None of these choices are correct.
C
A separation report may be required when a worker becomes separated from employment. It provides which of the following information? a.their wage and employment record b.reason for leaving c.Neither of these choices is correct. d.Both of these choices are correct.
D
How is the SUTA tax rate determined for a new employer? a.The federal government requires states to impose a specific rate based on the employers total full time employee base b.Each state sets a minimum 5% contribution rate for the employer's first year of business c.All states must set a 2.95% rate for the employer's first year of business d.Each state sets an initial contribution rate of not less than 1% for a specific period of time
D
Under the Interstate Reciprocal Coverage Arrangement, the services of a worker can be covered in the state of the election of the employer under which of the following conditions? a.The employee performs work in that state b.The employer has a place of business in that state c.The employee lives in that state d.Any of these choices is correct. e.None of these choices are correct.
D
Which of the following types of payments are taxable under FUTA? a.Reimbursement of ordinary and necessary business expenses b.Courtesy discounts to employees c.Christmas gifts of nominal value d.Commissions as compensation for covered employment and dismissal payments
D
To obtain the maximum credit of 5.4% against the FUTA tax, the employer must make 2021 calendar year state contributions on or before which date? a.January 31, 2021 b.January 31, 2022 c.March 31, 2020 d.February 28, 2020
B
Under which situations can an employer be liable for a net FUTA tax greater than 0.6 percent? Place a checkmark for any item deemed correct. a.When partnership wages are paid. b.An employer is tardy in paying the state contributions. c.Payments made to a Director of a corporation to attend a Board of Directors meeting. d.An employer located in a state where certain types of payments are not taxed for SUTA purposes but are taxable for FUTA. e.An employer is located in a state that has not met the repayment provisions of Title XII advances.
B & E
An employer, because of a favorable experience rating, is permitted to pay a state contribution at a reduced rate of 1.5 percent. What percentage of taxable wages must be paid in the aggregate to the federal and state governments? a.0.60% b.2.00% c.2.10% d.1.80%
C
