Payroll Chapter 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: Multiple choice question. 10% for unpaid amounts 10% remitted with tax return 15% after second IRS notification 15% for unpaid amounts

10% for unpaid amounts

Which of the following would reduce gross wages? Multiple select question. Contributions to 401(k) Union dues Health insurance Unqualified retirement plans Charitable contributions

Contributions to 401(k) Health insurance

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

Copy B

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: Multiple choice question. 10% for unpaid amounts 15% for unpaid amounts 10% remitted with tax return 15% after second IRS notification

10% for unpaid amounts

Which of the following is a significant factor in determining SUTA rates? Multiple choice question. Employee retention rate Employer tax payments Employer creditworthiness

Employee retention rate

FICA (Social Security and Medicare) Worker's Compensation Federal Income Tax Federal Unemployment

Employer and Employee Employer Employee Only Employer Only

Which of the following are employee benefits that would appear on the annual total compensation report? Multiple select question. Employee-paid on-site meals Employer-paid gym memberships Company-provided awards

Employer-paid gym memberships Company-provided awards

The federal tax designed to assist employees who have lost their job is: Multiple choice question. FUTA SUTA Social Security Medicare

FUTA

The form 940 tax return is for the annual reporting of: Multiple choice question. SUTA taxes FUTA taxes Federal withholding tax FICA taxes

FUTA taxes

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

False

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 Multiple choice question. $527.00 $263.50 $170.50 $341.00

He has not reached the maximum wage base for Social security. 4,250 x .062 = $263.50. $263.50 employee + $263.50 employer = $527.00.

Who would determine when Form 944 should be used? Multiple choice question. Company management IRS notification Company board of directors IRS website

IRS notification

Which of the following is true about worker's compensation insurance? Multiple choice question. The premium is the same for all employees. It is paid by the employer only. It is for all employee injuries. Annual premiums are fixed from year to year.

It is paid by the employer only.

An electronically filed W-3, and accompanying W-2 copies, should be submitted by: Multiple choice question. February 28 January 31 March 15 March 31

January 31

Form 940 is due by Multiple choice question. January 1 of the subsequent year January 15 of the subsequent year January 31 of the subsequent year February 15 of the subsequent year

January 31 of the subsequent year

What are identified as statutory deductions? Multiple select question. Charitable Contributions Social Security Taxes Federal Income Taxes Union Dues

Social Security Taxes Federal Income Taxes

Under what circumstances will the IRS waive penalties for filing, inaccuracy, and deposit issues (select all that apply)? Multiple select question. The company outsources its payroll and the error was made by the external preparer 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.

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)? Multiple select question. The credit taken against the 6.0% base rate may be reduced The state must reduce the amount of unemployment insurance money available The credit will continue to be reduced on the third and fifith year until the loan is repayed

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

If a state fails to repay a federal loan made to meet unemployment liabilities, what are the consequences (select all that apply)? Multiple select question. The credit will continue to be reduced on the third and fifith year until the loan is repayed The credit taken against the 6.0% base rate may be reduced The state must reduce the amount of unemployment insurance money available

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

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

company experience

The W-3 should be submitted with: Multiple choice question. copy 1 of the W-2 copy C of the W-2 copy A of the W-2 copy B of the W-2

copy A of the W-2

The W-2 has two numbered copies. These are for: Multiple choice question. employee's federal tax return filing state, federal, or local tax return employer's federal tax return filing state, city, or local tax return

filing state, city, or local tax return

An annual compensation report: Multiple select question. identifies all benefits paid by employer shows employee productivity identifies all benefits paid by employee shows cost per benefit provided shows total cost per employee

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

An annual compensation report: Multiple select question. identifies all benefits paid by employer shows total cost per employee shows cost per benefit provided identifies all benefits paid by employee shows employee productivity

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

Payroll related expenses: Multiple select question. decide training requirements impacts business profitability impacts profitability of a department assist decision making

impacts business profitability impacts profitability of a department assist decision making

The purpose of the W-3 is: Multiple choice question. summarize employee hours reconcile employer tax deposits transmit tax remittance data summarize total W-2 data

summarize total W-2 data

Labor distribution is: Multiple choice question. the number of employees per department the division of labor over the employees the number of employees currently working the number of employees per job classification

the number of employees per department

The frequency of depositing payroll taxes depends on Multiple choice question. the size of the employer's payroll. the company's credibility with the IRS the length of time the company has been in business.

the size of the employer's payroll.

Labor distribution reports would show Multiple select question. number of employers time worked number of employees overtime not used

time worked number of employees

SUTA is limited to ___ ____

wages collected

The lookback period is communicated by: Multiple choice question. email notification by the IRS written notification by the IRS company policy federal deposit schedule

written notification by the IRS

Caldetta Incorporated has 3 departments distributed as: 8 in sales, 6 in administration, and 14 in janitorial. Their total payroll cost is $42,000. What is the departmental classification breakdown? Multiple choice question. $12,000 each $12,000 sales; $9,000 administration; $21,000 janitorial $42,000 each $14,000 sales; $14,000 administration; $14,000 janitorial

$12,000 sales; $9,000 administration; $21,000 janitorial

What is the maximum earnings that an employer will pay FUTA on? Multiple choice question. $7,200 $6,700 $7,000 $6,000

$7,000

What is the maximum earnings that an employer will pay FUTA on? Multiple choice question. $6,000 $6,700 $7,200 $7,000

$7,000

Amanda made $1,240 on her current paycheck after pre-tax deductions. Assuming the entire $1,240 is subject to FICA, what is her portion of the FICA tax? Multiple choice question. $94.86 $188.20 $76.88 $97.15

$94.86

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

0.6

The lookback period is: Multiple choice question. 6 months prior to company year end 12 months prior to company year end 12 months prior to 6/30 6 months prior to 6/30

12 months prior to 6/30

Annual total compensation report

A list of all compensation that an employee earns per year, including (but not limited to) salary, commissions, bonuses, and all fringe benefits; examples include health insurance, employer contributions to the employee's retirement plan, life insurance, and tuition reimbursement.

ACH

Automated Clearing House

If an employee has earned $135,400, which boxes will report wages lower than $135,400 on the W-2? Multiple select question. Box 1 Box 3 Box 5 Box 11

Box 1 Box 3

If an employee has earned $135,400, which boxes will report wages lower than $135,400 on the W-2? Multiple select question. Box 3 Box 1 Box 5 Box 11

Box 3 Box 1

Which of the following is an employer-only tax? Multiple choice question. California Employment Training Tax Denver Occupational Privilege Tax Maryland Competitive Skills Scholarship Tax

California Employment Training Tax

What contributes to the SUTA rate deduction? Multiple select question. State credit reduction status Company experience rating State unemployment rates Employee demographics

Company experience rating State unemployment rates

tax remittance

Each state that charges income tax has its own form that it uses for employee income.

EFTPS

Electronic Federal Tax Payment System

Which of the following do not impact employee benefits? Multiple choice question. Holiday pay Employee federal withholding Health insurance costs Paid time off

Employee federal withholding

FUTA

Federal Unemployment Tax Act

FUTA stands for: Multiple choice question. Federal Underemployment Tax Act Federal Unionization Tax Act Fiscal Underemployment Tax Act Federal Unemployment Tax Act

Federal Unemployment Tax Act

Which professions are exempt from FUTA taxes? Multiple select question. Federal employees Corporate officers Agricultural workers Lawyers

Federal employees Agricultural workers

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

Form 941

Examples of employee payroll-related liabilities include: Multiple select question. FUTA taxes Garnishments Union dues FICA taxes Federal income tax SUTA taxes

Garnishments Union dues FICA taxes Federal income tax

The W-2 reflects what type of wages? Multiple choice question. Gross wages less pre-tax deduction Gross wages less deductions All gross wages earned Federal wages earned

Gross wages less pre-tax deduction

Employees of what profession must earn less than $1,000 to be exempt from FUTA provisions? Multiple choice question. Professional Baker Mechanic Household Employee Real Estate Agent

Household Employee

Which challenges do employers face when offering employee benefits? Multiple select question. Increasing employee turnover. Maintaining company profitability. Promoting employee engagement. Reducing employee turnover.

Maintaining company profitability. Promoting employee engagement. Reducing employee turnover.

Employers typically match which of the following taxes? Multiple choice question. Medicare and State Income Tax Federal and State Income Tax Medicare and Social Security Social Security and Federal Income Tax

Medicare and Social Security

Davis Reyes is the accounting for Heads Up Hat Corporation. As he prepares the payroll for the semimonthly pay period ending December 15, he notices that some of the year-to-date executives' salaries have exceeded $200,000. What payroll tax responsibilities does Heads Up Hat Corporation have, especially regarding FICA taxes? Medicare taxes should be deducted from all employees' pay and matched by the corporation. Social Security tax must be deducted from the executives' pay for those under the cap and matched by the corporation. An additional 0.9 percent Medicare tax must be deducted from the employees' pay for those over the base and matched by the corporation An additional 0.9 percent Medicare tax must be deducted from the executives' pay for those over the base, but no corporate match is required.

Medicare taxes should be deducted from all employees' pay and matched by the corporation. Social Security tax must be deducted from the executives' pay for those under the cap and matched by the corporation. An additional 0.9 percent Medicare tax must be deducted from the executives' pay for those over the base, but no corporate match is required.

The 941 is a quarterly report for which type of payroll depositors? Multiple choice question. Weekly Annual Daily Monthly

Monthly

Which of these states shares the cost of SUTA with the employee? Multiple choice question. Colorado New Jersey Arizona New Mexico

New Jersey

Which of these states shares the cost of SUTA with the employee? Multiple choice question. New Mexico Colorado New Jersey Arizona

New Jersey

What causes reductions in the employer's FUTA rate? Multiple choice question. On time SUTA deposits Company is a large employer State qualifies for credit reduction On time FUTA deposits

On time SUTA deposits

Federal Unemployment Tax Act (FUTA)

Pays for the administrative expenses of the unemployment fund.

State Unemployment Tax Act

Provides localized unemployment fund sources for employers

Who must file the Schedule B? Multiple choice question. Weekly depositors All companies Monthly depositors Semi-weekly depositors

Semi-weekly depositors

SUTA

State Unemployment Tax Act

Which of the following are not statutory deductions? Multiple select question. Supplemental Insurance Medicare Taxes Federal Income Tax Union Dues

Supplemental Insurance Union Dues

Labor distribution

The classification of a firm's labor by internally designated classifications.

Departmental classification

The division of payroll-related costs by employee function or organizational department.

Rosa Pierce is a payroll clerk at Hot Tree Hand Tools. She receives a written notice from the IRS that the company is a semiweekly schedule depositor. How is the deposit schedule determined? The payroll tax liability during the lookback period. The payroll frequency used by the company. The amount of FUTA taxes paid. The number of employees in the company.

The payroll tax liability during the lookback period.

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

True

State tax remittances occur on what schedule? Multiple choice question. Quarterly Varies by tax Same schedule as federal taxes Varies by state

Varies by state

Benefit analysis provides employers Multiple select question. a chance to balance employee retention budgetary needs per employee a check on the profitability of a department

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

Employers may use the annual compensation report for: Multiple choice question. SUTA tax filings benefit cost analysis FUTA tax filings worker compensation claims

benefit cost analysis

Employers must understand the total cost of an employee for: Multiple select question. budget development productivity determination profitability land purchases

budget development productivity determination profitability

Which of the following would not be included in the annual compensation report? Multiple select question. charitable contributions unemployment taxes employee bonuses employee paid taxes

charitable contributions employee paid taxes

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

company experience

What may cause the Social Security wages reported to be different than the Medicare wages? Multiple choice question. earnings under $117,000 earnings over $132,900 pretax deductions earnings over $200,000

earnings over $132,900

Which of the following would be included in the annual compensation report? Multiple select question. charitable contributions employee earnings employer paid taxes employee paid taxes

employee earnings employer paid taxes

The annual compensation report would use information from: Multiple choice question. union dues report employee earnings register employee's tax return charitable contribution report

employee earnings register

FUTA and SUTA are _______ ______ taxes in all but three states.

employer paid

FUTA and SUTA are ______ _____ taxes in all but three states.

employer only or paid

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

payroll employer

Departmental classification provides for: (Check all that apply). Multiple select question. disproportional allocation across employees equal allocation across departments per employee allocation across departments accurate labor cost distribution

per employee allocation across departments accurate labor cost distribution

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

proportional

The 941 is required to be filed: Multiple choice question. annually weekly daily quarterly

quarterly

Typical pre-employment costs would include: Multiple choice question. taxes training recruitment union dues

recruitment

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

responsible

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

retain employees competitive

An employer with $62,000 in payroll liabilities will be required to make a tax deposit: Multiple choice question. annually next business day quarterly semi-weekly

semi-weekly

Benchmarking employee compensation compares the company's costs against: Multiple select question. dissimilar companies other departments similar companies geographic averages

similar companies geographic averages

Typical costs of having employees include: Multiple select question. training wages utilities recruitment telephone

training wages recruitment

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

unemployment compensation or comp

What is the maximum wage that Social Security taxes are withheld from? Multiple choice question. $132,900 $171,000 $185,000 $200,000

$132,900

What is the maximum tax liability for Form 944? Multiple choice question. $2,500 annually $2,500 quarterly $2,000 annually $2,500 monthly

$2,500 annually

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? Multiple choice question. $40.00 $97.50 $57.40 $80.00

$40.00

Which of the following would increase the compensation of an employee? Multiple select question. employee withholding allowances 401(k) match by employer 401(k) contribution by employee health insurance paid by employer

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

The failure to file penalty applies to Multiple select question. Form 944 5% of the unpaid tax due with the return Form 941 Form 940

5% of the unpaid tax due with the return Form 941

As of 2019, which of the following accurately represents the full FUTA rate and wage base? Multiple Choice 6.0 percent, $7,000 0.6 percent, $7,000 Varies by state 0.6 percent, $132,900

6.0 percent, $7,000

Many companies pay between ______ and _______ percent of employee health insurance premiums

70 100

EFTPS is used to deposit Form ____ and Form _____taxes.

941 940