Ch. 6

Which of the following is an employer-only tax?

California Employment Training Tax

Which of the following are employee benefits that would appear on the annual total compensation report?

Company-provided awards Employer-paid gym memberships

Which of the following would reduce gross wages?

Contributions to 401(k) Health insurance

Calculate the total (both employee and employer share) Social Security liability on Michael. He has earned $114,250 year to date and his current pay is $4,250

$527.00

What is the maximum earnings that an employer will pay FUTA on?

$7,000

The amount the employer generally remits to the federal government for FUTA taxes is BLANK percent

0.6

The amount the employer generally remits to the federal government for FUTA taxes is BLANK percent.

0.6

A company that fails to files its tax deposits, but does so 16 days late, could be charged ______, the company has not received any notification from the IRS:

10% for unpaid amounts

The employee will file BLANK BLANK of the W-2 with his or her federal tax return.

Copy B

Which of the following are true about worker's compensation premiums?

Annual premiums are paid based on payroll estimates. They are expressed as amounts per $100 of payroll per job classification. Premiums vary based on employee job classifications.

The employee submits all copies of the W-2 to the Internal Revenue Service.

False

True or false: An employer reporting greater than $100,000 in payroll tax liability can deposit their taxes on the semiweekly schedule day.

False

The W-2 reflects what type of wages?

Gross wages less pre-tax deduction

Employees of what profession must earn less than $1,000 to be exempt from FUTA provisions?

Household Employee

Who would determine when Form 944 should be used?

IRS notification

How does payroll data help employers analyze payroll costs?

It facilitates the analysis of benefit offered and strategic advantage.

An electronically filed W-3, and accompanying W-2 copies, should be submitted by:

January 31

Match the deposit frequency with the due date Annual Semiweekly Monthly

January 31 of the following year Wednesday or Friday, depending on the day of the week the payroll was paid 15th of the monthly following the end of the quarter

Form 940 is due by

January 31 of the subsequent year

During which month of the prior year does the IRS notify employers about the next year's deposit requirements?

October

Which of the following is true about the employer responsibility for payroll taxes? (Check all that apply).

Social Security tax is matched by the employer up to the Social Security wage base. Employers match the 1.45% withheld for Medicare tax for all employees.

Match the box to the definition as shown on form W-2: Box 7 Box 10 Box 2 Box 3

Social Security tips Dependent care benefits Federal income tax withheld during the year Social Security wages

SUTA stands for:

State Unemployment Tax Act

What contributes to the SUTA rate deduction?

State unemployment rates Company experience rating

Under what circumstances will the IRS waive penalties for filing, inaccuracy, and deposit issues (select all that apply)?

The amount of the discrepancy does not exceed $100 or 2% (whichever is greater) of the required deposit The amount of the shortfall is deposited by either the due date of the period return or by the semiweekly deposit due date.

If a state fails to repay a federal loan made to meet unemployment liabilities, what are the consequences (select all that apply)?

The credit will continue to be reduced on the third and fifth year until the loan is repaid The credit taken against the 6.0% base rate may be reduced

Which of the following would not be included in the annual compensation report?

charitable contributions employee paid taxes

The employer's SUTA rate is determined by a mix of state unemployment rates and BLANK BLANK ratings

company experience

The W-3 should be submitted with:

copy A of the W-2

The lookback period involves the employer taxes reported prior to BLANK BLANK of the prior year.

june 30

If a company outsources its payroll processing, it is still BLANK for any late or unremitted payroll taxes.

liable

The frequency of each company's deposits is determined during the BLANK BLANK

lookback period

Additional Medicare tax for highly compensated employees is: (Check all that apply).

not matched by the employer.

Departmental classification results in (proportional/disproportional) BLANK distribution of wages across departments.

proportional

The company may be charged a 15% additional penalty for failure to deposit the appropriate amount of payroll-related taxes to the IRS if it:

remitted more than 10 days after first notice

Companies offer employee benefits to BLANK BLANK after the initial hire and to remain BLANK within their industry.

retain employees, competitive

An annual compensation report:

shows total cost per employee shows cost per benefit provided identifies all benefits paid by employer

When contesting a state unemployment claim, an employer should use BLANK BLANK form

state issued

Labor distribution is:

the number of employees per department

The frequency of depositing payroll taxes depends on

the size of the employer's payroll.

The W-2 acts as supporting documentation for the BLANK BLANK reported on forms 941 and 940.

total wages

State tax remittances occur on what schedule?

varies by state

SUTA is limited to

wages collected

If an employee has earned $135,400, which boxes will report lower wages on the W-2?

Box 1 Box 3

EFTPS is used to deposit Form BLANK and Form BLANK taxes

941, 940

The annual compensation report provides

A detailed analysis of employee costs.

Match the Form 940 line to the correct information: Line 1a Line 3 Line 4 Line 5 Line 8

Abbreviation of state where tax is paid All wages paid Wages exempt from FUTA Wages in excess of $7,000 Calculation of FUTA liability

Electronic tax deposits are required to be processed through:

EFTPS

Which of the following is an employer's payroll responsibility?

Employee compensation tax Tax withholding and remittance

True or false: All states have the same type of taxes.

False

FUTA stands for:

Federal Unemployment Tax Act

Examples of employee payroll-related liabilities include:

Federal income tax Garnishments Union dues FICA taxes

The total tax liability on schedule B must equal line 10 on

Form 941

Which of these states shares the cost of SUTA with the employee?

New Jersey

What causes reductions in the employer's FUTA rate?

On time SUTA deposits

Which of the following impact employee benefits?

Paid time off Health insurance costs Holiday pay

When reporting payroll taxes using Schedule B, on what date should the employer place the tax liability amount?

Payroll date

Which of the following are payroll tax deposit frequencies? Select all that apply.

Quarterly Monthly Semiweekly

Which of the following are ways an employer could minimize their SUTA tax rate?

Review the SUTA account regularly Review employee separation documentation.

What are the components of FICA tax?

Social Security Medicare

Match the copy with its purpose: Copy A Copy B Copy C Copy D

Social Security Administration Filing with Employee's Federal Tax Return Employee's Records Employer

When an employee earns less than $7,000 during the calendar year, the employer is responsible for how much FUTA tax?

The FUTA rate applied to the employee's earnings during the portion of the calendar year worked.

The changes to Form 941 resulting from the American Rescue Plan Act were effective as of:

The second quarter of 2021.

Benefit analysis provides employers

a check on the profitability of a department a chance to balance employee retention

What may cause the Social Security wages reported to be different than the Medicare wages?

earnings over $142,800

Which of the following would be included in the annual compensation report?

employee earnings employer paid taxes

A tax deposit frequency is

monthly

The purpose of the 941 is to:

reconcile tax deposits and liabilities

Typical pre-employment costs would include:

recruitment

Typical costs of having employees include:

recruitment training wages

What is the maximum tax liability for Form 944?

$1,000 annually

What is the maximum wage that Social Security taxes are withheld from during 2021?

$142,800

Many companies pay between BLANK and BLANK percent of employee health insurance premiums.

70, 100

Which professions are exempt from FUTA taxes?

Agricultural workers Federal employees

The American Rescue Plan Act affected Form 941 because of revisions in

COVID-19 tax credits Changes to COBRA premiums

What are identified as statutory deductions?

Federal Income Taxes Social Security Taxes

Which of the following are not statutory deductions?

Supplemental Insurance Union Dues

The payroll accountant may perform the following duties

allocating employee expenses to departments.

The BLANK BLANK report allows a company to measure the cost of each employee.

benefit analysis

Employers may use the annual compensation report for:

benefit cost analysis

Employers must understand the total cost of an employee for:

budget development productivity determination profitability

FUTA and SUTA are BLANK BLANK taxes in all but three states.

employer only

The W-2 has two numbered copies. These are for:

filing state, city, or local tax return

The SUTA wage base

fluctuates among states

Benchmarking employee compensation compares the company's costs against:

geographic averages similar companies

Which of the following would increase the compensation of an employee?

health insurance paid by employer 401(k) match by employer

Payroll related expenses:

impacts business profitability impacts profitability of a department assist decision making

An employer's expenses related to taxes, BLANK, and BLANK are an additional cost of having employees.

insurance, benefits

Labor distribution reports would show

number of employees time worked

Worker's compensation is another type of BLANK responsibility paid by the BLANK

payroll, employer

Departmental classification provides for: (Check all that apply).

per employee allocation across departments accurate labor cost distribution

The 941 is required to be filed:

quarterly

An employer has additional payroll tax liabilities including BLANK taxes and worker's BLANK insurance

unemployment, compensation

Cato Electronics, headquartered in Denver, Colorado has 10 employees. The Occupational Privilege Tax (OPT) for Denver is $4.00 per employee to be paid by the employer. What is the OPT for Cato Electronics?

$40.00