Payroll Ch. 4
For which of the following payments is the employer required to withhold federal income taxes? a. Advances made to sales personnel for traveling expenses b. Tipped employee's monthly tips of $120 c. Deceased person's wages paid to the estate d. Minister of Presbyterian church e. All of the above
B
Which of the following non-cash fringe benefits does not represent taxable income subject to federal income tax withholding? a. Flight on employer-provided airline b. Personal use of company car c. Sick pay d. Employer-paid membership to a country club e. All of the above are taxable.
E
All taxable noncash fringe benefits received during the year can only be added to the employees' taxable pay on the last payday of the year. True False
F
Noncash fringe benefits that are provided employees are treated as nontaxable income and thus are excluded from federal income tax withholding. True False
F
Since not-for-profit corporations are exempt from federal income taxes, they are not defined as employers under the federal income tax withholding law. True False
F
The amount of federal income taxes to be withheld is determined after subtracting from the employee's gross wages any local and state taxes. True False
F
A waiter receives cash tips amounting to $120 in a month. The waiter must report the amount of the cash tips to the employer by the 10th of the month following the month they receive the tips. True False
T
Before any federal income taxes may be withheld, there must be, or must have been, an employer-employee relationship. True False
T
Cash tips of $20 or more received by a tipped employee in a calendar month are treated as remuneration subject to federal income tax withholding. True False
T
The withholding of federal income and FICA taxes from a tipped employee is made from the employee's wages that are under the employer's control. True False
T
Under the federal income tax withholding law, a definition of employee excludes partners. True False
T
Under the federal income tax withholding law, income taxes are not withheld from the value of meals that employers furnish workers on the employers' premises for the employers' convenience. True False
T
Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips? a. Tips amounting to $10 or more in a calendar month must be reported by tipped employees to their employers. b. The withholding of federal income taxes on employees' reported tip income is made from the amount of tips reported by employees. c. When employees report taxable tips in connection with employment in which they also receive regular wages, the amount of tax to be withheld on the tips is computed as if the tips were a supplemental wage payment. d. Employers do not withhold FICA taxes on the tipped employees' reported tip income. e. None of the above statements is correct.
C
All of the following are properly defined as wages subject to the withholding of federal income taxes except: a. dismissal payment. b. kitchen appliances given by manufacturer in lieu of cash wages. c. vacation pay. d. payments made under workers' compensation law. e. a year-end bonus.
D
Under the federal income tax withholding law, which of the following is not defined as an employee? a. General manager, age 66 b. Governor of the state of Florida c. Secretary employed by a not-for-profit corporation d. Partner who draws compensation for services rendered the partnership e. Payroll clerk hired one week ago
D
