2019 All Sections 1 - 15 Multiple Choice

The business standard mileage rate for 2019 is: A. 58 cents per mile B. 56 cents per mile C. 54.5 cents per mile D. 54 cents per mile

A. 58 cents per mile

An ER must withhold on group-term life insurance in excess of $50,000 for which of the following taxes: A. Social security and Medicare taxes only B. Social security, Medicare, and federal income taxes C. Social security, Medicare, and FUTA taxes D. Social security, Medicare, federal income, and FUTA taxes

A. Social security and Medicare taxes only

An EE who regularly earns $400 per week is called to jury duty and is given $150 per week in jury duty pay. The ER makes up the difference between the jury duty pay and the EE's regular pay. What amount is subject to federal income tax withholding and social security, Medicare, and FUTA taxes? A. $150 B. $250 C. $400 D. None of the above

B. $250

The IRS-approved rate for ER-provided fuel for 2018 is: A. 5 cents per mile B. 5.5 cents per mile C. 7.5 cents per mile D. 9 cents per mile

B. 5.5 cents per mile

All of the following payments are classified as wages subject to federal income tax withholding except: A. Gift certificates for a local supermarket provided at the end of year B. Deceased worker's wages paid to the worker's estate or legal representative C. Bonuses D. Back pay awards

B. Deceased worker's wages paid to the worker's estate or legal representative

All of the following expenses incurred while on business travel qualify as a travel expense except: A. Dry cleaning of suit B. Gift purchased for a prospective customer C. Meals D. Tips

B. Gift purchased for a prospective customer

For what travel expenses may an ER use the high-low per diem rate instead of the individual federal per diem rate of the locality of travel? A. Lodging, not just meals and incidentals, and the travel is within CONUS B. Lodging, meals, and incidental expenses and the travel is within CONUS C. Meals and incidental expenses, and the travel is outside CONUS D. None of the above

B. Lodging, meals, and incidental expenses, and the travel is within CONUS

All of the following benefits are de minimis fringe benefits except: A. Occasional tickets to sporting events B. Subscriptions to business periodicals C. Traditional holiday gifts (e.g., turkeys, candy) D. Occasional personal use of company telephones

B. Subscriptions to business periodicals

All of the following benefits are nontaxable fringe benefits except: A. No-additional-cost services B. Qualified employee discounts C. ER-paid membership fees to an athletic club D. De minimis fringes

C. ER-paid membership fees to an athletic club

Which of the following conditions need not be met for job-related educational assistance to be excluded from income? A. Courses are not taken to qualify the EE for a promotion or transfer B. Courses must be related to the EE's current job C. Must be covered by an Education Assistance Program D. Course must not be necessary to meet the minimum education requirement of the job

C. Must be covered by an Education Assistance Program

Under the "fixed-date" method for substantiating business travel expenses, an advance can be provided no more than how many days before an expense is incurred? A. 10 days B. 15 days C. 20 days D. 30 days

D. 30 days

All of the following data elements are recordkeeping requirements for the business use of company-provided vehicles except: A. Date of the trip B. Business purpose of the trip C. Mileage for the trip D. Lodging expenses incurred during the trip

D. Lodging expenses incurred during the trip

All of the following methods are used to determine an ER's state UI experience rate except: a. Age ratio b. Reserve ratio c. Benefit ratio d. Benefit wage ratio

a. Age ratio

How many years must an ER keep the authorization agreement for direct deposit after revocation by the EE a. At least two years b. At least one year c. There is no retention requirement d. At least three years

a. At least two years

Training can improve all of the following attributes of an EE except: (13.2-2/VC) a. Attitude b. Skills c. Knowledge d. Abilities

a. Attitude

ERs must provide Form W-2 to EEs no later than: (8.8-1/IIC) a. December 31 b. January 31 c. February 28 d. March 31

b. January 31

What are the maximum earnings, if any, subject to Medicare tax? (6.7-2/IC) a. $135,000 b. $200,000 c. $118,500 d. No limit

d. No limit

All of the following items incurred while on business travel are travel expenses except: A. The cost of meals B. The cost of lodging C. Transportation costs D. Cost of entertaining clients

D. Cost of entertaining clients

All of the following benefits are working condition fringe benefits except: A. Business use of a company car or airplane B. Dues and membership fees to professional organizations C. Goods used for product testing by EEs D. Dependent care assistance

D. Dependent care assistance

In 2019, an EE claims married with 5 allowances on Form W-4, and is paid $2,356 every other Wed. Using the wage-bracket tables, how much federal income tax must be withheld from each wage payment. a. $116 b. $119 c. $114 d. $136

a. $116

Which of the following amounts of employment tax liability in a lookback period qualifies the ER to deposit federal taxes monthly? (8.2-1/IIC) a. $25,000 b. $52,000 c. $98,000 d. $105,000

a. $25,000

What is the FUTA wage base for 2019? a. $7,000 b. $10,000 c. $128,400 d. $132,900

a. $7,000

What is the maximum FUTA wage base per EE? (7.1-4/IC) a. $7,000.00 b. $8,000.00 c. $128,400.00 d. $132,900.00

a. $7,000.00

EE Sam qualifies for the foreign housing cost exclusion under the physical presence test for all of 2019, spending $26,250 on reasonable housing expenses. On January 1, 2019, the maximum foreign earned income exclusion was $105,900. What is Sam's foreign housing cost exclusion for 2019? a. $9,306 b. $26,250 c. $16,944 d. $105,900

a. $9,306 Foreign housing cost exclusion = reasonable housing expenses - base housing amount Base housing amount = maximum foreign earned income exclusion x 16% Base housing amount = $105,900 x .16 = $16,944 Foreign housing cost exclusion = $26,250 - $16,944 = $9,306

How long must an employer retain a Form I-9 for a terminated EE who worked for the ER for more than four years? a. 1 year after termination b. 3 years after termination c. 7 years after termination d. Does not have to keep terminated EEs' I-9 forms

a. 1 year after termination

If the number of withholding allowances decreases for an EE, other than because of a change brought about by the Tax Cuts and Jobs Act, how long does the EE have to submit a new Form W-4? a. 10 days b. 30 days c. 15 days d. 1 year

a. 10 days

Under federal law what is the maximum amount of an EE's "disposable earnings" that can be garnished to repay a debt to a creditor? a. 25% b. 27% c. 50% d. 65%

a. 25%

For how many weeks can unemployment benefits generally be collected without an extension? a. 26 weeks b. 38 weeks c. 40 weeks d. 52 weeks

a. 26 weeks

If an ER uses prenotification to test the EE's banking information before initiating direct deposit, how long before any actual pay is sent through the ACH network must the prenotification be sent? a. 3 banking days b. 2 weeks c. 6 banking days d. 6 calendar days

a. 3 banking days

For federal tax purposes, what is the minimum retention period for records when the ER does not claim a refund, credit, or abatement? (10.2/IID) a. 4 years from the due date of the return or the date the tax is paid, whichever is later b. 4 years from the last IRS audit c. 7 years from the due date of the return or the date the tax is paid, whichever is later d. Indefinite

a. 4 years from the due date of the return or the date the tax is paid, whichever is later

What is the maximum number of hours a NE EE can work in a workweek under the FLSA before OT premium pay is due? a. 40 b. 55 c. 80 d. 168

a. 40

What is a defined contribution pension plan? (4.6-1/ID) a. A plan in which benefits are based upon EE and/or ER contributions b. A plan in which benefits are based only upon ER contributions c. A plan in which EEs are promised a certain level of benefits d. A plan in which EEs are required to make contributions

a. A plan in which benefits are based upon EE and/or ER contributions

How is an interface in an automated payroll system defined? (12.2-1/IVB) a. A procedure to pass information from one system to another b. A diagram of how data flows between systems c. A piece of equipment that connects the terminal to the mainframe d. Written instructions for users which describe the system's functions

a. A procedure to pass information from one system to another

If a pay period ends August 22, EEs are paid August 29, and the payroll tax deposit is due September 15, when should payroll expenses be recorded? a. August 22 b. August 23 c. August 29 d. September 15

a. August 22

Which department in a company generally administers defined benefit plans? a. Benefits department b. Human Resources department c. Payroll department d. Accounting department

a. Benefits department

On Form W-2, what box is used to report wages, tips, and other compensation? a. Box 1 b. Box 10 c. Box 12 d. Box 14

a. Box 1

Which of the following deductions is not a voluntary deduction? a. Child support b. Charitable contributions c. Credit union deductions d. Life insurance premiums

a. Child support

What code is entered in Box 12 of Form W-2 when the value of group-term life insurance over $50,000 is reported? a. Code C b. Code D c. Code E d. Code F

a. Code C

How are marketable securities classified? a. Current assets b. Tangible assets c. Intangible assets d. Current liabilities

a. Current assets

For 2019, how much can EEs receive in advance EIC payments? a. EEs cannot receive advance EIC payments in 2019 b. $1,826 c. $1,750 d. $1,830

a. EEs cannot receive advance EIC payments in 2019.

Who, if anyone, is liable if an ER fails to respond to an IRS tax levy against an EE's wages? (9.1-1/IIIB) a. ER only b. EE only c. Both EE and ER d. No one is liable

a. ER only

How, if at all, are payments made to EEs during absence from work due to illness under their ER's sick pay/disability plan treated for FICA taxation? (4.3-2/IIIA) a. FICA taxable for the first 6 calendar months b. Not subject to FICA tax c. FICA taxable after the first 3 months d. FICA taxable the entire time

a. FICA taxable for the first 6 calendar months

Which taxes are elective deferrals to a 457(b) plan for public sector EEs subject to if the ER is subject to FICA taxes? a. FICA taxes b. FICA and FIT withholding c. FICA and FUTA taxes d. FICA, FIT, and FUTA taxes

a. FICA taxes

From which of the following taxes are cafeteria plan contributions generally exempt? (4.5-8/IIIB) a. FICA, FIT, and FUTA only b. FICA, FIT, and SIT only c. FICA, FUTA, and SUTA only d. SIT and FIT only

a. FICA, FIT, and FUTA only

An EE has been absent from work for nine months because of a non job-related illness and is not expected to return to work for another three months. Which taxes must be withheld at this point from disability payments made to the EE by the ER? a. Federal income tax b. Social security and Medicare taxes c. Social security, Medicare, and FUTA taxes d. No withholding required

a. Federal income tax

An ER has received several attachments against an EE's wages. The attachments were received in the following order: Federal tax levy, consumer garnishment, and child support withholding order (the underlying order was issued by a court after the federal tax levy was received by the ER). In which order are the attachments applied against the EE's wages? (9.1-1, 9.1-2, & 9.1-3/IIB, IIIB) a. Federal levy, child support withholding order, consumer garnishment b. Child support withholding order, consumer garnishment, federal levy c. Child support withholding order, federal levy, consumer garnishment d. Federal levy, consumer garnishment, child support withholding order

a. Federal levy, child support withholding order, consumer garnishment

On which form are household EEs' payroll taxes reported? (8.5-3/IIC) a. Form 1040, Schedule H b. Form 941 c. Form 941-X d. Form 945

a. Form 1040, Schedule H

On what form is federal unemployment tax reported? (7.1-7/IIC) a. Form 940 b. Form 941 c. Form 945 d. Form 944

a. Form 940

What form is completed by new ERs when requesting an EIN? a. Form SS-4 b. Form SS-5 c. Form SS-8 d. Form W-9

a. Form SS-4

Under the management theory of situational leadership, under which management style would a manager be likely to control the job and the procedures while relying on personal communication with EEs to coach them in performing the job? (13.1/VC) a. High task/high relationship b. Low task/high relationship c. Low task/low relationship d. High task/low relationship

a. High task/high relationship

What is the term for the income tax an EE would have paid if the EE had remained in the US rather than taking a foreign assignment? a. Hypothetical tax b. Excise tax c. Equalization tax d. Gift tax

a. Hypothetical tax

Where does the ER send Form 1099-MISC? a. IRS b. SSA c. USCIS d. Wage and Hour Division

a. IRS

What law requires Form I-9 to be retained? a. Immigration Reform and Control Act of 1986 b. Civil Rights Act of 1964 c. Age Discrimination in Employment Act 1967 d. Americans with Disabilities Act of 1990

a. Immigration Reform and Control Act of 1986

What financial statement shows the net income or net loss of a business? a. Income statement b. Balance sheet c. Statement of owner's equity d. Statement of cash flow

a. Income statement

What visa is available to students or teachers on an exchange program? a. J-1 b. L-1 c. O-1 d. P-1

a. J-1

Copy A of Form W-2 must be sent to the SSA no later than: (8.8-2/IIC) a. January 31 b. February 15 c. Last day of February d. March 31

a. January 31

Where are business transactions first recorded? a. Journal b. General ledger c. Trial balance d. Balance sheet

a. Journal

To qualify as an executive exempt from the minimum wage and OT requirements of the FLSA, what must the EE's responsibilities include? (2.4-1/IB) a. Manage 2 or more FT equivalent EEs b. Receive a salary of at least $1,500 per week c. Have no ability to hire and fire d. Nonexempt duties performed exceed 30% of time worked

a. Manage 2 or more FT equivalent EEs

Which of the following requirements would not appear in a mid-level payroll job description? a. Maximum age b. Minimum education c. Specialized skills d. Key responsibilities

a. Maximum age

What must an ER do after learning that a Form W-4 submitted by a current EE is invalid? a. Not implement the Form W-4 b. Withhold as if the EE were single with zero allowances c. Inform the IRS d. Make the necessary corrections

a. Not implement the Form W-4

Each of the following behaviors is an example of affiliation other than: a. Not including EEs in lunch and after-work activities b. Putting EEs on project teams and task forces c. Encouraging EEs to join and participate in professional organizations d. Providing EEs with networking opportunities

a. Not including EEs in lunch and after-work activities

When each transaction is described by a business document that proves the transaction did occur, which accounting concept is being applied? a. Objectivity b. Cost c. Matching d. Business entity

a. Objectivity

All of the following items are needed for web-enablement except: a. PCs with extensive memory b. Sufficient Internet infrastructure c. Web-enabling tools d. HRMS application expertise

a. PCs with extensive memory

What is the final test before going "live" with a new system? a. Parallel test b. Spot test c. Stress test d. Conversion test

a. Parallel test

What does a totalization agreement allow an EE to do? (14.2-4/IIF) a. Pay SS tax in only one country b. Pay SS taxes in two countries c. Pay income tax in two countries d. Pay income tax in only one country

a. Pay SS tax in only one country

What method of internal control requires EEs to show identification to get paid, thus discouraging the creation of phantom EEs? a. Physical payouts b. Segregation of duties c. Job rotation d. System edits

a. Physical payouts

All of the following types of evidence support an ER's treatment of a worker as an IC under the "reasonable basis" test except: a. Place of work b. Court decisions c. Private letter rulings d. Past IRS employment tax audits

a. Place of work

What is an IRS decision on how the tax laws apply to a set of facts involving a single taxpayer called? a. Private Letter Ruling b. News Release c. Revenue Ruling d. Revenue Procedure

a. Private Letter Ruling

Under the FLSA, all of the following records are required to be kept for at least 3 years from the last date they were in effect except for a. Records showing additions to or deductions from EEs' wages b. Collective bargaining agreements c. Certificates authorizing the employment of minors d. Records showing total sales volume and goods purchased

a. Records showing additions to or deductions from EEs' wages

What method is used by the majority of states to determine an ER's experience rate for its contribution to state unemployment insurance? a. Reserve ratio b. Benefit ratio c. Benefit wage ratio d. Payroll stabilization

a. Reserve ratio

Which form must be completed in addition to Form 941, when the ER is a semiweekly depositor? (8.3-4/IIC) a. Schedule B b. Schedule D c. Form 943 d. Form 945

a. Schedule B

Which section of the Internal Revenue Code regulates cafeteria plans? a. Section 125 b. Section 127 c. Section 128 d. Section 162

a. Section 125

What may ERs require when implementing direct deposit? (5.3-2/IG) a. That participating EEs authorize the deposit b. That participating EEs deposit their net pay in their checking account c. That new EEs must participate d. That all payroll and systems dept EEs must participate

a. That participating EEs authorize the deposit

A single EE with no dependents earns $43,000 in 2019. The EE claims 12 allowances on a Form W-4 for 2019. Which of the following is correct concerning the Form W-4? a. The EE may claim 12 allowances b. The ER will require the EE to verify the 12 allowances c. The ER will disregard the Form W-4 and withhold as single with no allowances d. The ER will notify the IRS of the claim by submitting a copy of the Form W-4

a. The EE may claim 12 allowances

XYZ Corporation, a semiweekly depositor, has a payroll tax liability of $65,000 on the first Thursday in December 2019. When must the liability be deposited? a. The following Wednesday b. The following Friday c. The 15th of the following month d. With the quarterly Form 941

a. The following Wednesday

In order to use the optional flat rate for determining the federal income tax to withhold from a supplemental wage payment, how must supplemental wage payments made at the same time as a regular wage payment be treated? (6.4-4/IIIB) a. The supplemental wages must be identified separately b. The supplemental wages must be combined with the wage payment when calculating taxes c. The supplemental wages must be combined with the wages paid for the last preceding payroll period or with the wages to be paid for the current payroll period d. Supplemental payments can never be paid with regular wage payments

a. The supplemental wages must be identified separately

What must occur for the payroll dept to achieve its goal? a. There must be a plan b. Planning will not help c. Read the daily astrology page d. Roaming around solves all goal achievement needs

a. There must be a plan

Which of the following situations describes one of the general requirements that must be met for workers to be considered statutory EEs? a. They have a continuing relationship with the ER b. They have a substantial investment in the business equipment c. They are licensed real estate agents d. Most of their compensation is related to sales

a. They have a continuing relationship with the ER

When an ER receives Form 668-W from the IRS, when must the ER begin to withhold and remit? a. With the first payment of wages after receipt of Form 668-W b. Within 14 days after receipt of Form 668-W c. Within 30 days after receipt of Form 668-W d. Within 30 days after receipt of Form 668-W or the first date of payment of wages, whichever is later.

a. With the first payment of wages after receipt of Form 668-W

Business expense advances not spent, but which are part of an accountable plan, must be returned to the ER within how many days to avoid taxation? (3.3-5/IIB) a. Within 120 days after the expenses were incurred b. Within 120 days after the advance was disbursed c. Within 60 days after the expenses were incurred d. Within 60 days after the advance was disbursed

a. Within 120 days after the expenses were incurred

How many days must an individual be present in a foreign country over a 12-month period to qualify for the foreign earned income exclusion under the physical presence test? a. 365 days b. 330 days c. 120 days d. 90 days

b 330 days

A salesperson who lives and works in a state with no SIT works for a salary plus a bonus. The EE receives a $2,000.00 bonus and has YTD wages of $54,000.00. Using the supplemental optional flat rate, calculate the net amount of the EE's bonus. (6.4-2 & 6.7-1/IIIA) a. $1,560.00 b. $1,407.00 c. $1,487.00 d. $1,347.00

b. $1,407.00 $2,000 - [2000 x (22% + 6.2% + 1.45%)]

An ER pays for 100% of the insurance for its EEs as part of a sickness and disability benefits plan. Assume an EE received $1,800 in disability pay from a third-party insurer during the first six calendar months of disability and $600 over the seventh and eighth months. How much of the disability pay would be social security and Medicare taxable, and how much is FIT taxable? a. $1,800 FICA and $1,800 FIT taxable b. $1,800 FICA and $2,400 FIT taxable c. $2,400 FICA and $2,400 FIT taxable d. $2,400 FICA and $1,800 FIT taxable

b. $1,800 FICA and $2,400 FIT taxable

An ER provides an EE with the ability to use a company vanpool to come to work. How much is the value of each trip? (3.2-2/IIIA) a. $1.00 b. $1.50 c. $2.00 d. $3.00

b. $1.50

In 2019, Wilson Corporation had three EEs. Two of the EEs worked full time and earned salaries of $25,000 each. The third EE worked only part time and earned $3,000. The ER timely paid state unemployment tax equal to 5.4% of each EE's wages up to the state's wage base. How much FUTA tax is due from Wilson Corp for 2019, after the credit for state unemployment taxes is taken? a. $0 b. $102 c. $136 d. $918

b. $102 ($7,000 wage base x 2) + $3,000 = $17,000 $17,000 x .006 = $102

For 2019, what is the SS tax wage base? a. $118,500 b. $132,900 c. $127,200 d. $128,400

b. $132,900

An EE whose YTD wages are $60,000.00 receives a net bonus check of $100.00. The EE is not subject to SIT. Using the supplemental optional flat rate, calculate the gross amount of the EE's bonus payment. (3.4-11/IIIA) a. $70.35 b. $142.15 c. $148.48 d. $326.26

b. $142.15 $100/(100% - 22% - 6.2% - 1.45%) $100/.7035

What is the maximum elective deferral to a 401(k) plan during 2018 by an EE under 50 years of age which is not included in federal gross income? (4.6-1/IIB) a. $18,500.00 b. $19,000.00 c. $25,000.00 d. $56,000.00

b. $19,000.00

An ER pays an EE a bonus of $2,000 and chooses to pay the employment taxes on the bonus. The EE lives and works in a state which has no income tax and has year-to-date wages of $55,000. What amount is included in the EE's wages? (3.4-11/ IIIB) a. $2,969.56 b. $2,842.93 c. $2,000.00 d. $1,347.00

b. $2,842.93 net pay / net percent = gross pay $2000 / 0.7035 (1 - 0.22 (supplemental wage tax) - .0765 (FICA))

An ER's FUTA taxable wages for the first quarter of 2019 amount to $35,000. What is the ER's FUTA tax liability for the quarter? a. $2,100 b. $210 c. $0 d. $42

b. $210 $35,000 x 0.006

Barbara is an hourly paid EE making $7.48/hour. She is scheduled to work 35 hours a week. For the past week, Barbara worked 43 hours. Under the FLSA, what is the minimum she must receive as gross pay? a. $261.80 b. $332.86 c. $310.42 d. $321.64

b. $332.86 ($7.48 x 43) + ($7.48 x 0.5 x 3)

A nonexempt EE's hourly rate of pay is $8.00 per hour and the EE is paid 8 hours for a holiday during the week. What is the EE's gross pay for the week under the FLSA if the EE works the following hours? (2.6-3/IIIA) Sun: 0, Mon: 8, Tue: 0, Wed: 8, Thu: 8, Fri: 8, Sat: 4 a. $288.00 b. $352.00 c. $368.00 d. $384.00

b. $352.00 36 hours regular pay + 8 hours pay for hours not worked (no OT premium required) = 44 hours straight-time pay 44 x $8.00 = $352

An EE claims single and one withholding allowance and is paid $550 every Fri in 2019. Using the wage-bracket tables, how much federal income tax must be withheld? a. $34 b. $44 c. $58 d. $54

b. $44

What must a nonexempt EE be paid under the FLSA if the EE is paid $10.00 per hour, works 40 hours in a workweek, and is paid 8 hours for a holiday in accordance with company policy? (2.6-4/IB; IIIA) a. $400.00 b. $480.00 c. $500.00 d. $520.00

b. $480.00

In 2019, an EE claims single with 2 allowances on Form W-4, and is paid $1,110 on the 1st and 15th of each month. Using the wage-bracket tables, how much federal income tax must be withheld from each wage payment? a. $86 b. $65 c. $44 d. $26

b. $65

Cherise Pitts has two EEs who are paid $17,000 and $5,000, respectively, during 2019. If Cherise timely pays 5.4% of their wages for state unemployment tax, what is the amount of her 2019 FUTA tax liability after the state tax credit is taken? a. $0 b. $72 c. $720 d. $96

b. $72 $7,000 wage base + $5,000 = $12,000 $12,000 x .006 = $72

On which form are payments to independent contractors reported to the IRS? (8.12-1/IIC) a. W-2 b. 1099-MISC c. SS-8 d. 1099-INT

b. 1099-MISC

An EE subject to a student loan garnishment loses her job and gets another one six months later. How long is it before the garnishment can be reinstated? a. 6 months from her date of reemployment b. 12 months from her date of reemployment c. 9 months from her date of reemployment d. No grace period is allowed

b. 12 months from her date of reemployment

If a payer receives a "B" notice from the IRS, how long does the payer have to send a copy to the payee along with Form W-9, Request for Taxpayer Identification Number and Certification? a. 30 days b. 15 days c. 10 days d. 5 days

b. 15. days

What percentage of the maximum foreign earned income exclusion is used to determine the base housing amount? a. 14% b. 16% c. 18% d. 30%

b. 16%

EE Ben, an alien, is present in the US for 155 days during the current year, 123 days during the first preceding year, and 144 days in the second preceding year. How many days is Ben present in the US during the current year under the substantial presence test? a. 150 days b. 220 days c. 223 days d. 365 days

b. 220 days [155 days in the current year] + [41 (1/3 x 123) days in the first preceding year] + [24 (1/6 x 144) days in the second preceding year] = 220 days

How long does the ADEA require that records of an EE's name, address, date of birth, occupation, pay rate, and compensation be kept? a. 2 years b. 3 years c. 4 years d. 5 years

b. 3 years

How long are FUTA tax records normally required to be retained? a. 3 years b. 4 years c. 5 years d. Indefinitely

b. 4 years

A governmental educational institution may offer qualified deferred compensation under what section of the Internal Revenue Code? (4.6-3/ID) a. 401(k) b. 403(b) c. 408(k)(6) d. 501(c)(18)(D)

b. 403(b)

Adjustments for fractional cents are reported on what line of Form 941? a. 8 b. 7 c. 4 d. 9

b. 7

What is a "Request for Proposal"? (12.4-3/IVD) a. A vendor's written bid to the prospective purchaser of the service or software b. A company's description of its structure, requirements, and expectations of a new system prepared for the vendor c. The project team's recommendations to the appropriate approval committee d. The agreement between the company and vendor describing the software to be provided

b. A company's description of its structure, requirements, and expectations of a new system prepared for the vendor

Which of the following facts does not indicate the intent to meet the bona fide residence test? a. Purchase of a home or signing a long-term lease in a foreign country b. A temporary assignment of up to three months c. Involvement in the cultural and social life of a foreign country d. The type of visa or residence permit secured by the EE

b. A temporary assignment of up to three months

Which of the following participants in the direct deposit process distributes EFT payments to the receiving financial institutions? a. ODFI b. ACH c. RDFI d. FRB

b. ACH

The definition of a "newly hired" EE for the purposes of new hire reporting includes an EE who was previously employed by the ER but has been separated from that prior employment for: a. At least 6 weeks b. At least 60 consecutive days c. At least 2 calendar months d. At least 30 consecutive days

b. At least 60 consecutive days

What system is designed to eliminate the time taken to punch in and out and to write and sign information on time cards, as well as the errors that such procedures can cause? a. Software system b. Automated time and attendance system c. In-house system d. Time-sharing system

b. Automated time and attendance system

Which of the following states allows ERs to use the federal Form W-4 to calculate state income tax withholding? a. AZ b. CA c. MI d. NC

b. CA

Which of the following deductions from an EE's pay has the highest priority? (9.1-2/IIIB) a. Credit union b. Child support c. Creditor garnishment d. EE benefits

b. Child support

What account is credited for child support withheld? a. Child support expense b. Child support payable c. Accounts payable d. Payroll taxes expense

b. Child support payable

A manager building a successful team must deal with EEs who have different personal styles. Each of the following styles is represented on a team other than: a. Contributors b. Controllers c. Collaborators d. Communicators

b. Controllers

When a company purchases a computer on credit for $2,500, which of the following journal entries is made? a. Debit assets and debit liabilities b. Debit assets and credit liabilities c. Credit assets and debit liabilities d. Credit assets and credit owner's equity

b. Debit assets and credit liabilities

What entries are required to record $45,000.00 in salaries earned between March 27 and March 30 but not paid until April 6? (11.5/VIIC) a. Debit assets, credit salary expense b. Debit salary expense, credit salary payable c. Debit salary payable, credit payroll checking d. Debit salary payable, credit salary expense

b. Debit salary expense, credit salary payable

A profit sharing pension plan is what type of pension plan? (4.6-1/ID) a. Defined Benefit Plan b. Defined Contribution Plan c. Cash or Deferred Arrangement d. Nonqualified Deferred Compensation

b. Defined Contribution Plan

All of the following items of information are needed to calculate the value of group-term life insurance except: (3.3-1/IIIA) a. EE's age at December 31 b. ER's cost of the group-term life insurance c. IRS table of group-term life insurance values d. EE's after-tax group-term life insurance deduction

b. ER's cost of the group-term life insurance

Who pays FUTA tax? a. EEs only b. ERs only c. Both EEs and ERs d. Statutory nonEEs only

b. ERs only

What government agency enforces the Equal Pay Act a. National Labor Relations Board b. Equal Employment Opportunity Commission c. Wage and Hour Division d. Federal Trade Commission

b. Equal Employment Opportunity Commission

Which of the following areas is not governed by the Portal-to-Portal Act? a. Travel time b. Equal pay for equal work c. De minimis time d. Preliminary and postliminary activities

b. Equal pay for equal work

Which of the following laws established minimum wage and OT standards in the US? a. Civil Rights Act b. Fair Labor Standards Act c. Age Discrimination in Employment Act d. Federal Insurance Contributions Act

b. Fair Labor Standards Act

What is the transmittal form that accompanies each Form 1099 series if the forms are filed on paper? a. Form W-3 b. Form 1096 c. Form 8109 d. Form 1099-R

b. Form 1096

Which of the following forms must be submitted to an IC (who is paid at least $600) after the end of the year for services performed during that year? a. Form W-2 b. Form 1099-MISC c. Form 1096 d. Form SS-8

b. Form 1099-MISC

What form may EEs receiving $20.00 or more in tips per month use to report the tips to their ER? (3.4-27/IIC) a. Form SS-8 b. Form 4070 c. Form 3903 d. Form 8919

b. Form 4070

Which of the following forms is used by the EE to report tips to the ER? a. Form 8821 b. Form 4070 c. Form 8027 d. Form 1099-MISC

b. Form 4070

On what form must ERs covered by FUTA report their liability? a. Form 945 b. Form 940 c. Form W-3 d. Form 941

b. Form 940

What form must be filed to report and explain corrections to amounts previously reported on Form 941? a. Form 941-M b. Form 941-X c. Form 944-X d. An amended Form 941

b. Form 941-X

Which of the following forms must be completed to obtain a SSN? a. Form SS-4 b. Form SS-5 c. Form SS-8 d. Form W-9

b. Form SS-5

For payments made to a disabled EE by a third party who is not an agent, the third party is not required to withhold federal income tax unless the EE requests that a certain amount be withheld by furnishing the third party with: a. Form W-4 b. Form W-4S c. Form W-4P d. Form 1099-R

b. Form W-4S

EEs' paychecks are mailed from their corporate office on Mon for a Thu payday. Because of a disaster in the area, no mail will be delivered until Sat, when the EEs are not at work. So the EEs can get paid during this week, the ER wires cash wages to the EEs on Friday. The checks arrive at the office on Mon. When are the wages considered paid? a. Thu b. Fri c. Sat d. Mon

b. Friday

The ER's Tax Guide, Circular E is found in which IRS Publication? a. IRS Pub. 12 b. IRS Pub. 15 c. IRS Pub. 18 d. IRS Pub. 37

b. IRS Pub. 15

After the new system has been selected and approved, what is the next step in the selection process? a. Specify scope b. Implementation c. Review d. Define requirements

b. Implementation

Which of the following is NOT an EE benefit of using paycards to pay EE wages? a. Eliminating check cashing fees b. Increased risk of paycheck theft c. Protection from loss because paycard can be replaced d. No time or geographic limitations on funds access

b. Increased risk of paycheck theft

What is the program that allows for the exchange of information between two computer systems? (12.2/IVB) a. Integration b. Interface c. On-line d. Time Sharing

b. Interface

Which of the following accounts describes the legal obligation of a business to pay its debts? a. Asset b. Liability c. Owner's equity d. Expenses

b. Liability

Which of the following features is a possible disadvantage of the direct deposit system to the ER? a. Direct deposit b. Loss of float c. Check printing cost d. Check storage cost

b. Loss of float

All of the following features are advantages of an in-house payroll system except: a. Convenient access b. Low fixed costs c. Scheduling flexibility d. System security

b. Low fixed costs

All of the following features are disadvantages of using a service provider for processing your payroll except: a. Lack of control over security b. Low fixed costs c. No control over breakdowns d. Responsibility for filing errors

b. Low fixed costs

Which of the following systems is least likely to interface with payroll? a. HR b. Marketing c. Benefits d. Accounting

b. Marketing

When revenue and expenses are recorded in the same accounting period, which accounting concept is being applied? a. Business entity b. Matching c. Realization d. Continuing concern

b. Matching

Which of the following entities is a foreign country for purposes of qualifying for the Section 911 exclusions? a. Puerto Rico b. Mexico c. Guam d. Virgin Islands

b. Mexico

What are the three main areas regulated by the FLSA? (2.1/IB) a. Minimum wage, OT, garnishments b. Minimum wage, OT, child labor c. Equal pay, child labor, garnishments d. Minimum wage, child labor, garnishments

b. Minimum wage, OT, child labor

How frequently are new ERs that anticipate having an annual tax liability of more than $1,000 required to make withheld federal income and employment tax deposits? a. Semiweekly b. Monthly c. The next banking day d. Quarterly

b. Monthly

EEs covered by collective bargaining agreements may be exempt from which provisions of the FLSA? a. Minimum wage requirements b. OT pay requirements c. Minimum wage and OT pay requirements d. Child labor restrictions

b. OT pay requirements

What is the due date for depositing FUTA taxes for the third quarter? a. September 30 b. October 31 c. November 30 d. December 31

b. October 31

The ER prepares an automated file of direct deposit records that indicates where its EEs' pay is to be deposited. What is the name of the financial institution where this file is then sent? a. Automated Clearing House b. Originating Depository Financial Institution c. NACHA d. Receiving Depository Financial Institution

b. Originating Depository Financial Institution

All of the following facts and circumstances would be typical of an IC except: a. Works off site b. Paid by the hour c. Furnishes own tools d. Sets own work hours

b. Paid by the hour

What document records payroll data for each payroll period? a. Earnings record b. Payroll register c. Payroll ledger d. Accounts receivable ledger

b. Payroll register

What is the process of transferring entries from the journal to the general ledger called? a. Journalizing b. Posting c. Footing d. Balancing

b. Posting

What is the main objective of any payroll system? a. Prepare internal reports b. Provide for compliance with federal, state, and local withholding, depositing, and reporting requirements c. Accurately paying EEs in a restricted time frame on payday d. Maintain adequate records of all data and transactions

b. Provide for compliance with federal, state, and local withholding, depositing, and reporting requirements

All of the following workers are statutory EEs except: a. Full-time life insurance salespersons b. Qualified real estate agents c. Homeworkers d. Traveling or city salespersons

b. Qualified real estate agents

A $265 per month parking space provided by an ER to an EE is defined as a: (3.2-1/IIIA) a. De minimis fringe benefit b. Qualified transportation fringe benefit c. No-additional-cost fringe benefit d. Qualified EE discount

b. Qualified transportation fringe benefit

Which of the following conditions of employment is governed by the FLSA? a. The frequency of pay for EEs b. Recordkeeping requirements c. Hours worked by EEs over the age of 16 d. Lunch and rest break requirements

b. Recordkeeping requirements

What is a decision by the IRS on how a section of the IRC is to be applied to a certain given set of facts called? a. Revenue Procedure b. Revenue Ruling c. New Release d. Private Letter Ruling

b. Revenue Ruling

During 2019, a corporate officer is paid a semimonthly salary of $9,000 on the 15th and last day of the month. How much social security and Medicare taxes should be withheld from the officer's Aug 31 paycheck (i.e., 16th pay period)? a. SS $0.00, Med $0.00 b. SS $0.00, Med $130.50 c. SS $74.40, Med $130.50 d. SS $558.00, Med $130.50

b. SS $0.00, Med $130.50

What program does the SSA provide to verify EE's SSNs? a. Immigration Reform and Control Act b. Social Security Number Verification Service c. New Hire Reporting d. Online TIN Verification

b. Social Security Number Verification Service

Which of the following payments is not foreign earned income? a. Professional fees b. Social security benefits c. Tax reimbursements d. Cost of living allowances

b. Social security benefits

Which of the following laws governs unclaimed wages? a. Federal wage-hour laws b. State escheat laws c. Equal employment opportunity laws d. Labor relations laws

b. State escheat laws

Which of the following requirements regulates the handling of unclaimed wages? (5.5/IIA) a. Internal Revenue Service b. State escheat laws c. The Walsh-Healy Act d. The Consumer Credit Protection Act

b. State escheat laws

What are "escheat" laws? a. Federal laws governing the treatment of unclaimed wages as abandoned property b. State laws governing the treatment of unclaimed wages as abandoned property c. State laws protecting EEs from their ER d. State laws outlining the frequency with which EEs are paid

b. State laws governing the treatment of unclaimed wages as abandoned property

What is a warning or alert called that is built into the system that checks for errors and either corrects the error or notifies the operator that something may be wrong? a. Monitor edit b. System edit c. Control edit d. Procedure edit

b. System edit

Mark contributes $75 per month to an FSA as part of a cafeteria plan to pay for uncovered medical and dental expenses for his family. At the end of the year (the plan has no grace period or carryover), Mark has $250 left in the account. What happens to the balance in the account? a. The balance will be carried over to the following year b. The balance is forfeited c. It will be included in Mark's income d. It can be transferred to a separate plan

b. The balance is forfeited

Which of the following developments is not a circumstance that would allow benefit changes during the plan year under a cafeteria plan? a. A strike or lockout b. The company institutes a 1% across-the-board salary reduction c. A change in the participant's legal marital status d. The EE terminates during the plan year

b. The company institutes a 1% across-the-board salary reduction

Northwestern Shipping Corp accumulates a payroll tax liability on the Friday before Labor Day of $131,640. When is the deposit due? a. The Friday before Labor Day b. The following Tuesday c. The following Wednesday d. The following Friday

b. The following Tuesday

When must a semiweekly depositor with a Friday payday deposit its employment tax liability? a. The following Tuesday b. The following Wednesday c. The following Thursday d. The following Friday

b. The following Wednesday

What action must occur for the ER to correctly designate a worker as an independent contractor? (1.2-1/IA) a. The worker signs an agreement of independent contractor status b. The worker meets the common law test of independent contractor status c. The worker is part-time or temporary d. The worker uses the ER's tools

b. The worker meets the common law test of independent contractor status

What is the Medicare wage base for 2019? a. $132,900 b. There is no limit on taxable Medicare wages c. $128,400 d. $200,000

b. There is no limit on taxable Medicare wages

Which of the following statements is true concerning EE salary deferrals to a 401(k) plan? a. They are subject to FIT b. They are subject to FICA c. They are subject to FIT and FICA d. EE contributions are not taxable

b. They are subject to FICA

What are the due dates for Form W-2? a. To EEs by Jan 31 and to SSA by the last day of Feb (Mar 31 if filed electronically) b. To EEs and SSA by Jan 31 c. To EEs and IRS by Feb 28 d. To EEs by Jan 31 and to IRS by Feb 28

b. To EEs and SSA by Jan 31

What phase of in-house system design follows the Development Phase? (12.4/IVE) a. Evaluation Phase b. User Testing Phase c. Analysis Phase d. Conceptual Definition Phase

b. User Testing Phase

What do situational leadership proponents emphasize? a. Using a style that comes naturally b. Whatever style fits the demands of the particular job c. Payroll dept edicts d. Company edicts

b. Whatever style fits the demands of the particular job

When does an ER stop withholding for a federal tax levy? a. When Form 668-W is received b. When Form 668-D is received c. When Form 668-S is received d. When the IRS collection officer calls

b. When Form 668-D is received

Which of the following benefits is not a qualified benefit for a cafeteria plan? a. Coverage under accident and health insurance plans (medical, dental, vision, sick pay, etc.) b. Working condition fringes c. Participating in a 401(k) plan cash or deferred arrangement d. Group-term life insurance in excess of $50,000

b. Working condition fringes

All of the following skills are management skills except: (13.2/VC) a. Strategic planning b. Writing documentation c. Defining goals d. Defining subtasks

b. Writing documentation

What is the threshold for requiring ERs to report to EEs their charitable contributions made through payroll deductions during a calendar year so the EE may claim the contribution on a personal income tax return? a. more than $3,000 in total deductions for the year b. any amount deducted during the year c. more than $250 deducted from a single paycheck d. more than $600 in total deductions for the year

b. any amount deducted during the year

When an ER received a federal tax levy for an EE who is paid on a one-time basis or a recurring but irregular basis, how is the exempt amount from levy determined? a. the EE is entitled to the weekly exempt amount for the entire time to which the payment is attributable b. the EE is entitled to the weekly exempt amount for each week to which the payment is attributable c. the EE is entitled to the daily exempt amount for each day to which the payment is attributable d. the EE is entitled to the monthly exempt amount for the entire time to which the payment is attributable

b. the EE is entitled to the weekly exempt amount for each week to which the payment is attributable

An EE is paid $1,500.00 biweekly. The EE's deductions are FIT $250.00, SIT $75.00, Medicare tax $19.58, SS tax $83.70, credit union $75.00, union dues $50.00, and pre-tax medical insurance $150.00. What is the EE's disposable pay? (9.1-2/IIB, IIIB) a. $921.72 b. $1,175.00 c. $1,071.72 d. $971.72

c. $1,071.72 Wage, less FIT, SIT, FICA

What amount would be included in the EE's income when the ER chooses to pay the taxes on a bonus of $800.00 and to use the supplemental optional flat rate for calculating the FIT? The EE's YTD earnings are $17,500.00 and the EE is not subject to any SIT. (3.4-11/IIIA) a. $562.80 b. $1,000.00 c. $1,137.17 d. $1,187.82

c. $1,137.17 $800/[100% - (22% + 6.2% + 1.45%)]

How much foreign earned income may an EE exclude from gross income in 2018? (14.1-4/IIF) a. $103,900 b. $100,800 c. $105,900 d. The salary of a federal govt EE grade GS-14, step 1

c. $105,900

What is the maximum amount that can be excluded from gross income under the foreign earned income exclusion for 2018? a. $103,900 b. $102,100 c. $105,900 d. Cannot exclude income earned abroad

c. $105,900

What are the maximum wages, if any, on which social security tax is withheld? (6.7-2/IC) a. $127,200 b. $128,400 c. $132,900 d. There is no maximum

c. $132,900

During 2019, Matt qualified for the foreign housing cost exclusion under the physical presence test for 335 days, spending $20,000 on reasonable housing expenses. The maximum foreign earned income exclusion on January 1, 2019 was $105,900. What was Matt's base housing amount for 2019? a. $16,944.00 b. $3,056.00 c. $15,550.70 d. $14,826.00

c. $15,550.70 Daily base housing amount = annual base housing amount ($105,900 x .16)/number of days in the year ($16,944/365 = $46.42) Base housing amount = daily base housing amount x number of qualifying days ($46.42 x 335 = $15,550.70)

For 2019, the maximum amount of salary that an EE may elect to defer to a 401(k) plan that does not allow catch-up contribution is: a. $18,500 b. $18,000 c. $19,000 d. $56,000

c. $19,000

Under 403(b), where an annuity plan includes a salary reduction agreement but does not allow catch-up contributions, assuming no other plan exists, what is the maximum amount EEs can defer to the plan in 2019? a. $18,500 b. $18,000 c. $19,000 d. Maximum exclusion allowance

c. $19,000

An ER paid $2,000 of its $3,000 2018 state unemployment tax liability by January 31, 2019 and the remainder when it filed its 2018 Form 940 a week later. What is the ER's normal credit against FUTA liability for 2018? a. $900 b. $2,700 c. $2,900 d. $3,000

c. $2,900 ($2,000 x 100%) + ($1,000 x 90%)

The company pays EEs who work on holidays at a double-time rate. A salaried NE EE earning $48,000.00 per year who normally works a 40-hour workweek works 7 hours on a holiday. What is the additional pay due the EE? (2.6-3/IIIA) a. $161.54 b. $242.31 c. $323.12 d. $369.28

c. $323.12 $48,000.00/2080 = $23.08/hour $23.08 x 2 x 7 = $323.12

What is the minimum a nonexempt EE must be paid under the FLSA when the EE is paid $8.00 per hour for the first 30 hours of work and $10.00 per hour for the next 20 hours of work in a workweek? (2.6-4/IB, IIIA) a. $440.00 b. $480.00 c. $484.00 d. $490.00

c. $484.00 ($8 x 30) + ($10 x 20) = $440 $440/50 = $8.80/hour 10 OT hours x ($8.80 x 0.5) = $44 $440 + $44 = $484

A nonexempt EE who is paid $10.00 per hour works the following hours in a workweek. What must the EE be paid under the FLSA? (2.6-3/IIIA) Sun: 0, Mon: 8, Tue: 8, Wed: 10, Thu: 8, Fri: 8, Sat: 4 a. $400.00 b. $460.00 c. $490.00 d. $550.00

c. $490.00 46 hours x $10 = $460 $10 x .5 x 6 = $30 $460 + $30 = $490

ER-provided dependent care assistance must be reported in Boxes 1, 3, and 5 of Form W-2 when the assistance exceeds what amount? a. $2,000 b. $3,000 c. $5,000 d. $7,500

c. $5,000

Under a dependent care assistance FSA, EEs may be reimbursed up to what amount of dependent care expenses for each plan year? a. $2,000 b. $3,000 c. $5,000 d. $10,000

c. $5,000

A federal tax levy is received with the EE claiming married filing jointly with two exemptions on Form 668-W. The EE's biweekly gross pay is $1,500.00, and the EE claims married with 2 allowances on Form W-4. The EE has no other voluntary or involuntary deductions from pay and is not subject to state income tax. Using the wage-bracket method to calculate federal income tax withholding, what amount, if any, must be paid to the IRS biweekly for the federal tax levy? (9.1-1/IIIB) a. $1,261.54 b. $238.46 c. $51.71 d. $0.00

c. $51.71

An ER's wages subject to FUTA tax liability for the first 3 quarters of 2019 are $35,000, $30,000, and $28,000 respectively. How much FUTA tax must be deposited in the third quarter? a. $58 b. $744 c. $558 d. $668

c. $558 Q3 is 1st quarter that FUTA tax is over $500

In 2019, what is the maximum amount of contributions that can be made by an EE and an ER to the EE's account in a defined contribution plan? a. $19,000 b. $25,000 c. $56,000 d. $280,000

c. $56,000

An EE who is paid $15.00 per hour works a 43-hour week. The EE is claiming married with 3 withholding allowances, is paid weekly, and has no voluntary or required deductions other than withholding taxes. The EE has YTD wages of $25,000.00 and lives and works in a state with no state income tax. Using the percentage method, calculate the EE's net pay. (2.6-3 & 6.4-2/IIIA; IIIB) a. $589.65 b. $632.49 c. $596.62 d. $646.89

c. $596.62

What is the threshold amount for requiring reporting of service payments to individuals who are not EEs on Form 1099-MISC? a. $10 b. $400 c. $600 d. $550

c. $600

Payments made by a business to non-corporate independent contractors for services rendered must be reported to the IRS when the payments exceed: (8.12-1/IIC) a. $1,000.00 for the calendar year b. $600.00 in the last 12 months c. $600.00 for the calendar year d. $1,500.00 for the calendar year

c. $600.00 for the calendar year

How long must an ER maintain records it is required to keep under the Family and Medical Leave Act? a. 4 years b. 6 years c. 3 years d. 1 year

c. 3 years

Documents relating to federal income, SS, and federal unemployment taxes must be retained for a minimum of: (10.2/IID) a. 2 years b. 3 years c. 4 years d. 5 years

c. 4 years

If an ER fails to withhold FICA taxes from a worker it misclassifies as an IC and does not file a Form W-2 or a Form 1099 for that worker, what penalty may the IRS impose? a. 10% of the EE's share of FICA taxes b. 20% of the EE's share of FICA taxes c. 40% of the EE's share of FICA taxes d. 100% of the EE's share of FICA taxes

c. 40% of the EE's share of FICA taxes

The Family and Medical Leave Act applies to private sector ERs with: a. 75 or more EEs b. 150 or more EEs c. 50 or more EEs d. 50 or fewer EEs

c. 50 or more EEs

Under the CCPA, what is the maximum amount that can be withheld from an EE's wages for spouse or child support when the EE is supporting another family and is not in arrears for the support owed? a. 50% of gross pay b. 50% of take-home pay c. 50% of disposable pay d. 55% of disposable pay

c. 50% of disposable pay

At what age is an EE no longer subject to a 10% excise tax when the EE receives a distribution from his or her qualified retirement plan? a. 60 b. 62 c. 59 1/2 d. 58

c. 59 1/2

What is the FUTA tax rate in 2019? a. 7.65% b. 6.2% c. 6.0% d. 5.4%

c. 6.0%

For 2019, at what rate is social security tax withheld from an EE's wages? (6.7-1/IC) a. 4.20% b. 1.45% c. 6.20% d. 7.65%

c. 6.20%

Under the CCPA, what is the maximum amount that can be withheld from an EE's wages for spouse or child support when the EE is not supporting another family and is 15 weeks in arrears for the support owed? a. 65% of gross pay b. 60% of disposable pay c. 65% of disposable pay d. 55% of disposable pay

c. 65% of disposable pay

If the records required by the FLSA are maintained at a central location, how soon after a DOL request must the ER make them available? a. 24 hours b. 48 hours c. 72 hours d. 10 days

c. 72 hours

According to NACHA--The Electronic Payments Association, what was the portion of the US workforce that had their pay directly deposited in 2016? a. 90% b. 25% c. 82% d. 74%

c. 82%

Which of the following workers would be considered an IC? (1.2-1/IA) a. A life insurance agent b. A lawyer hired on a project-by-project basis with the company providing secretarial services and office space c. A lecturer who is paid a percentage of the money collected at fund raisers when speaking on behalf of a nonprofit clinic d. An outside salesperson who is paid by commission but is guaranteed a minimum salary

c. A lecturer who is paid a percentage of the money collected at fund raisers when speaking on behalf of a nonprofit clinic

What is a defined benefit pension plan? (4.6-1/ID) a. A plan in which benefits are based upon EE contributions b. A plan in which benefits are based upon ER contributions c. A plan is which EEs are promised a certain level of benefits d. A plan in which EEs are required to make contributions

c. A plan in which EEs are promised a certain level of benefits

All of the following aspects of a job may be delegated except: a. Authority b. Responsibility c. Accountability d. Job tasks

c. Accountability

The special discrimination tests for 401(k) plans are both based on the ADP of EEs who are eligible to participate in the plan. What does ADP mean? a. Automatic deferred pension b. Actual deferred pension c. Actual deferral percentage d. Actual defined percentage

c. Actual deferral percentage

Which of the following steps must an ER take before initiating an International ACH Transaction (IAT)? a. Contact the Office of Foreign Assets Control to let them know about the IAT b. No steps need to be taken c. Add coding to the transaction that identifies it as an IAT d. Contact the RDFI to let them know that an IAT is being processed.

c. Add coding to the transaction that identifies it as an IAT

What is sick pay? (4.3-1/IIIA) a. Amounts paid when the EE has a doctor appt b. Amounts paid when the EE's child has a doctor appt c. Amounts paid due to sickness or illness d. Amounts paid due to job-related sickness or illness

c. Amounts paid due to sickness or illness

Which of the following individuals is performing as a manager? a. A door-to-door salesperson b. A person repairing a machine c. An individual checking the quality of work performed by others d. An individual deciding which of two assigned tasks to do next

c. An individual checking the quality of work performed by others

An EE who uses a company car which is available for personal use and has a fair market value of $55,000.00 may value the personal use under what method? (3.2-2/IIIA) a. Cents-per-mile b. Commuting valuation c. Annual lease value d. EE's estimate of value

c. Annual lease value

Each of the following individuals would be classified as an EE except: a. Controller of a company b. College professor c. Attorney (solo practitioner) d. City police officer

c. Attorney (solo practitioner)

An EE receives serious car injuries while away from work on February 15, 2019 and does not return to work until November 1, 2019. Through what date must the ER withhold and pay social security, Medicare, and FUTA taxes on sick pay given to the EE by the ER? a. July 15, 2019 b. August 15, 2019 c. August 31, 2019 d. September 1, 2019

c. August 31, 2019

What financial statement presents the financial position of a business entity by summarizing assets, liabilities, and owner's equity? (11.7-1/VIIA) a. Income Statement b. Trial Balance c. Balance Sheet d. Cash Flow Statement

c. Balance Sheet

If a monthly depositor accumulates $100,000 in tax liability on any day during a month, how does this affect the ER's depositor status? a. Remains monthly b. Becomes semiweekly for the rest of the year c. Becomes semiweekly for the rest of the current year and all of next year d. Becomes a one-day depositor for the rest of the year

c. Becomes semiweekly for the rest of the current year and all of next year

All of the following benefits are taxable compensation except: (3.2-1/IIIA) a. Personal use of a company car b. Noncash sales prizes and awards c. Business use of a company car d. Back pay award

c. Business use of a company car

What is the IRS definition of wages? (3.1/IIIA) a. Monies received as benefits paid by the ER b. Regular pay plus OT compensation c. Compensation received for services rendered d. Commissions and bonuses

c. Compensation received for services rendered

When the same accounting concepts are applied in the same way in each accounting period, which accounting concept is being applied? a. Objectivity b. Continuing concern c. Consistency d. Business entity

c. Consistency

To satisfy federal, state, and local taxing agency requirements, which copies of the Form W-2 must the EE receive by Jan 31? a. Copies A, B, & C b. Copies B, C, & 1 c. Copies B, C, & 2 d. Copies B, 1, & 2

c. Copies B, C, & 2

Which of the following facts disqualifies an EE from the executive exemption from minimum wage and OT? (2.4-1/IB) a. Having the authority to hire EEs b. Being paid a salary of $1,000.00 per week c. Directing the work of one EE d. Spending more than 20% of time worked on nonexempt duties

c. Directing the work of one EE

Each of the following transactions is recorded as an expense except: (11.1/VIIA) a. Vacation pay b. Cost of EE benefits c. EE portion of SS d. ER portion of SS

c. EE portion of SS

When depositing withheld income and employment taxes, what method of deposit must be used by an ER a. Form 8109 b. Mailing through USPS c. EFTPS d. Delivering a check to a financial institution

c. EFTPS

What are disposable earnings? (9.1-2/IIIB) a. Contributions deducted from the EEs' pay, which are a liability for the ER b. Contributions of EEs to a disability benefit fund c. Earnings remaining after withholding for income taxes and other amounts required by law d. Earnings remaining after a federal tax levy is deducted

c. Earnings remaining after withholding for income taxes and other amounts required by law

In what account is the payment of salaries and wages recorded? a. Asset b. Liability c. Expense d. Revenue

c. Expense

An agreement is made between the ER and the EEs whereby the ER pays the EEs all or part of their salary while they are receiving WC benefits, in return for which the EEs turn over their WC benefits to the ER. Under such an arrangement, any amount paid in excess of the EE's WC benefits is wages subject to: a. FICA only b. FIT only c. FICA and FIT d. Excess is not taxable

c. FICA and FIT

Full-time life insurance salespersons paid solely by commission are exempt from: a. FICA taxes b. SS tax only c. FUTA tax d. FIT and FUTA taxes

c. FUTA tax

Which of the following laws and regulations does not regulate EFT? a. Regulation E b. Title IX of the Consumer Credit Protection Act c. Fair Labor Standards Act d. Electronic Fund Transfer Act

c. Fair Labor Standards Act

When must an EE file a new Form W-4 to continue exempt status from 2017? (6.3-1/IIB) a. When the EE receives more than $350.00 in unearned income b. December 31 c. February 15 d. When the EE earns more than $455.00 a week

c. February 15

If all the following withholding orders are received at the same time, which must the ER deduct first? a. Creditor garnishment b. Student loan garnishment c. Federal tax levy d. State tax levy

c. Federal tax levy

In a computer system, what is the organization of related data called? (12/IVB) a. Job b. Field c. File d. Record

c. File

Other than an EE's name, address, and SSN, and the ER's name, address, and EIN, federal law requires that a new hire report must include the EE's: a. Date of birth b. Health insurance coverage c. First day of work for pay d. Starting salary or hourly rate of pay

c. First day of work for pay

What form is filed to claim bona fide resident status? a. Form 1042 b. Form 2442 c. Form 2555 d. Form 1116

c. Form 2555

What form does an ER receive from the IRS to levy on an EE's salary? a. Form 668-D b. Form 916 c. Form 668-W d. Form 2159

c. Form 668-W

Which of the following forms may be completed and submitted to the IRS to determine the employment status of an individual for federal income and employment tax purposes? a. Form SS-4 b. Form SS-5 c. Form SS-8 d. Form W-9

c. Form SS-8

Which form is completed by recipients of pension and annuity payments to determine the amount to withhold? a. Form W-4 b. Form W-4S c. Form W-4P d. Form 1099-R

c. Form W-4P

All of the following areas are regulated by the FLSA except: (2.1/IB) a. Child labor b. OT compensation c. Holiday payments d. Minimum wage

c. Holiday Payments

Under the FLSA, all of the following payments are included in the regular rate of pay except: (2.6-3/IB) a. Remuneration paid EEs b. Salaries, commissions, bonuses c. Holiday pay d. Room and board provided by ER

c. Holiday pay

Which of the following is NOT an ER benefit of using paycards to pay EE wages? a. Reduced costs for off-cycle checks b. All EEs are eligible for electronic pay c. Increased escheat issues d. Increased EE productivity because of less time spent cashing paychecks

c. Increased escheat issues

What is the due date for Form 940? a. December 31 b. January 15 c. January 31 d. February 15

c. January 31

In what document are financial transactions first posted? (11.3/VIIC) a. Chart of Accounts b. General Ledger c. Journal d. Balance Sheet

c. Journal

What is the Form 941 tax deposit lookback period for calendar year 2019? a. Jul 1, 2016 - Jun 30, 2017 b. Jan 1, 2016 - Dec 31, 2016 c. Jul 1, 2017 - Jun 30, 2018 d. Jan 1, 2018 - Dec 31, 2018

c. July 1, 2017 - June 30, 2018

On May 31, a monthly depositor's payroll tax liability is $15,000. When is the deposit due? a. June 7 b. June 1 c. June 15 d. June 30

c. June 15

FUTA and SUTA taxes payable are what types of accounts? a. Owner's equity b. Assets c. Liabilities d. Net worth

c. Liabilities

What kind of account is Accrued Salaries Payable? (11.1-1/VIIA) a. Asset b. Expense c. Liability d. Revenue

c. Liability

All of the following features are advantages of an automated time and attendance system except: a. Less time spent on processing b. Fewer errors introduced during processing c. More time spent on administrative tasks d. Decreased costs

c. More time spent on administrative tasks

With which of the following countries does the US not have a totalization agreement? a. Belgium b. Finland c. New Zealand d. Sweden

c. New Zealand

Which of the following individuals are statutory nonEEs? a. Homeworkers b. Full-time life insurance salespersons c. Newspaper deliverers d. Traveling salespersons

c. Newspaper deliverers

If an ER wants to offer a SIMPLE plan to its EEs, how many EEs must work for the company? a. At least 100 EEs b. 25 or more EEs c. No more than 100 EEs d. 25 or few EEs

c. No more than 100 EEs

ERs wishing to bring aliens of extraordinary ability in the arts, sciences, education, or athletics to the US seek what visa? a. B-1 b. H-1 c. O-1 d. Q-1

c. O-1

Once an EE has given authorization for EFT and the ER creates electronic pay transactions for deposit, where does the ER send them? a. ACH b. RDFI c. ODFI d. NACHA

c. ODFI

All of the following wage payments are included when calculating the EE's regular rate of pay except: (2.6-3/IIIA) a. Nondiscretionary bonus b. Shift differential c. Paid time not worked d. Premium pay less than 1.5 times the base rate

c. Paid time not worked

An ER has decided to change from an old to a new payroll system. In implementing the new system, both the old and the new system are maintained during the testing period. What is this changeover technique called? a. Debugging b. Pilot testing c. Parallel testing d. Back-up system conversion

c. Parallel testing

Which of the following procedures is the best internal control procedure? (11.8/VIA) a. Canceled checks are reviewed by payroll dept, then passed on to the internal audit dept b. The check signer is stored by the payroll dept for safekeeping c. Payroll checks are signed and sealed by the cash management dept d. The payroll dept operates the check signer and mails all payroll checks

c. Payroll checks are signed and sealed by the cash management dept

What is the prime factor that ERs can use in determining to which state an EE should be "allocated" for UI purposes? a. Location of base of operations b. Location of EE's residence c. Place where the work is localized d. Place of direction or control

c. Place where the work is localized

Under the EFT system, what participating party receives the individual transactions and posts them for the customers'/EEs' accounts? a. ODFI b. ACH c. RDFI d. NACHA

c. RDFI

All of the following duties would be included in the job description of an EE working in the payroll dept except: (13.2-2/VB) a. Data entry of payroll input b. Review source documents for proper authorization c. Reconciliation of payroll bank account d. Distribution of payroll related reports

c. Reconciliation of payroll bank account

What is a common name for a journal? a. Record of final entry b. Record of secondary entry c. Record of original entry d. Record of cross-reference

c. Record of original entry

Which basic management skill focuses on communicating with top management? (13.2-5/VD) a. Planning b. Organizing c. Reporting d. Directing

c. Reporting

Each of the following actions is considered a good guideline when conducting meetings except: a. Plan b. Prepare c. Start with a meal d. Control the time

c. Start with a meal

Which of the following requirements determines how soon EEs must be paid after a pay period ends? (5.1/IG) a. Internal Revenue Service b. The ability of the payroll system to process pay c. State law d. Fair Labor Standards Act

c. State law

When determining the amount to send to the IRS to satisfy a tax levy, the exempt amount is deducted from what amount? a. Gross pay b. Disposable pay c. Take-home pay d. Federal income tax withheld

c. Take-home pay

Each of the following conditions is a fundamental dimension that grows out of principle-centered leadership except: a. Security b. Wisdom c. Tenacity d. Guidance

c. Tenacity

Johnny's ER contributes $150 per month to his stock bonus option plan as part of his benefits package. Johnny now wishes to take the $150 per month in cash. What will be the tax treatment of the benefit? a. The $150 will be a tax-free benefit to Johnny b. The $150 is subject to FIT only c. The $150 is subject to FIT, FICA, and FUTA taxes d. The $150 is subject to FICA and FUTA taxes only

c. The $150 is subject to FIT, FICA, and FUTA taxes

If a company closes its book on March 31, which of the following statements is true? (11.4/VIIA) a. The company's fiscal year is calendar year. b. For corporate income tax purposes the company operates on a calendar year. c. The company's fiscal year is April 1 to March 31. d. The company has two overlapping fiscal years.

c. The company's fiscal year is April 1 to March 31.

If payday for the last week in December falls in January, what date governs the year for which the wages are reported? (6.1/IG) a. The date in the year in which the wages were earned b. The date in the year in which the wages are recorded on the General Ledger c. The date in the year in which the pay was made available to EEs d. The date in the year chosen at the ER's option

c. The date in the year in which the pay was made available to the EEs

All of the following resources are available within the company except: a. EEs in the payroll dept b. Other depts c. The local bank's funds d. Company funds

c. The local bank's funds

Each of the following objectives is considered to be a valid reason why companies conduct performance evaluations except: a. To provide documentation for salary increase decisions b. To determine which EEs are promotable c. To fire EEs who conflict with other EEs d. To encourage EEs' personal growth and development

c. To fire EEs who conflict with other EEs

Each of the following goals is a reason why states might require ERs to report newly hired EEs except: a. To detect welfare fraud b. To detect unemployment compensation fraud c. To locate individuals who have not claimed state lottery winnings d. To locate noncustodial parents subject to a child support withholding order

c. To locate individuals who have not claimed state lottery winnings

Which day of the week occurs 53 times in 2019? a. Monday b. Thursday c. Tuesday d. Wednesday

c. Tuesday

Which of the following types of compensation is reported on Form W-2, but is NOT subject to federal income tax withholding? (3.4-29/IIIB) a. Dismissal pay b. Uniform allowances c. Value of group-term life insurance over $50,000.00 d. Whole life insurance

c. Value of group-term life insurance over $50,000.00

In which of the following situations would it be appropriate for a supervisor to counsel an EE? (13.2-3/VC) a. When the EE has a dependency problem b. When the EE has family problems c. When the ER has a budget freeze on salary increases d. When the EE's parent has died

c. When the ER has a budget freeze on salary increases

What income earned by resident aliens is subject to federal income tax? a. US income b. Foreign income c. World-wide income d. Unearned income

c. World-wide income

An EE worked for three ERs by Aug 20, 2019. The EE earned $46,000, $48,000, and $62,000 respectively from each ER. What is the total amount of social security and Medicare taxes that should have been withheld from the EE's wages? a. $10,148.40 b. $9,191.40 c. $9,730.80 d. $11,934.00

d. $11,934.00

Under the ER's disability plan, the ER pays 80% of the cost of insurance and the EE pays the difference. An EE received $3,000 in disability pay from a third-party insurer during the first six calendar months of disability, and $500 a month for each of the next three months. How much of the disability pay is taxable for FICA, and how much is taxable for FIT? a. $4,500 FICA, $4,500 FIT taxable b. $3,000 FICA, $4,500 FIT taxable c. $2,400 FICA, $4,500 FIT taxable d. $2,400 FICA, $3,600 FIT taxable

d. $2,400 FICA, $3,600 FIT taxable $3,000 x 80% = $2,400 FICA ($3,000 + $500 + $500 + $500) x 80% = $3,600 FIT

What is the monthly maximum amount of ER-provided parking that is excluded from income as a qualified transportation fringe benefit? (3.2-1/IIIA) a. $260.00 b. $130.00 c. $255.00 d. $265.00

d. $265.00

What is the minimum wage that hourly paid computer professionals must be paid to be exempt from the OT requirements of the FLSA? a. $4.25 per hour b. $10.00 per hour c. $29.967 per hour d. $27.63 per hour

d. $27.63 per hour

What is the federal minimum wage as of January 1, 2019? (2.5/IB) a. $6.55 per hour b. $5.85 per hour c. $7.00 per hour d. $7.25 per hour

d. $7.25 per hour

If the state law requires a minimum wage of $8.00 per hour, but the FLSA requires $7.25, what hourly minimum wage must be paid to EEs who are covered by both state law and the FLSA? (2.2/IB) a. $6.55 b. $4.25 c. $7.25 d. $8.00

d. $8.00

What is the maximum that a temporary foreign assignment can realistically be expected to last for purposes of excluding EE business expense reimbursements from income? a. 3 months b. 6 months c. 9 months d. 12 months

d. 12 months

Sam's regular workweek consists of 40 hours and he is paid biweekly. If Sam works 38 hours in week one and 43 hours in week two, how many OT hours must he be paid for? a. 0 b. 1 c. 1.5 d. 3

d. 3

When an EE leaves employment before the end of the calendar year and requests Form W-2 in writing, how long does the ER have to send it? a. 10 days from the request b. 15 days from the request c. 20 days from the request d. 30 days from the request

d. 30 days from the request

Under the Walsh-Healey Public Contracts Act, how long must a separate log of occupational injuries and illnesses be kept? a. 2 years b. 3 years c. 4 years d. 5 years

d. 5 years

How many parts does Form 668-W, Notice of Levy on Wages, Salary, and Other Income, contain? a. 3 b. 4 c. 5 d. 6

d. 6 parts

Which of the following payments is subject to SS tax? (3.4-10/IIIA) a. WC benefit b. Wages paid in the year after the worker's death c. Payments to ministers of churches performing duties as such d. A back pay award as part of a settlement of a suit for unpaid OT pay

d. A back pay award as part of a settlement of a suit for unpaid OT pay

What state uses the payroll stabilization method to determine an ER's state unemployment tax rate? a. MN b. MI c. AR d. AK

d. AK

All of the following accounts are asset accounts except: (11.1-1/VIIA) a. Cash b. Accounts Receivable c. Inventory d. Accounts Payable

d. Accounts Payable

When an ER receives a federal tax levy for an EE, what deductions from the EE's pay are allowed when determining the amount due the IRS? (9.1-1/IIIB) a. All mandatory taxes only b. All mandatory taxes, dependent health insurance, and child support deductions only c. All mandatory taxes and all wage attachments currently in place only d. All mandatory taxes and all voluntary and involuntary deductions currently in place only

d. All mandatory taxes and all voluntary and involuntary deductions currently in place only

Auditors are often concerned with whether RFPs for new computer systems are well formulated. Which of the following items should typically be included in a request for proposal? a. The hardware configuration b. An emphasis on software rather than hardware c. Detailed specifications of the current workload d. An emphasis on the tasks to be performed rather than specific hardware capabilities

d. An emphasis on the tasks to be performed rather than specific hardware capabilities

Under the principles of double entry bookkeeping, what does a credit to an account signify? (11.1/VIIB) a. An increase in an asset account b. A decrease in a capital account c. A decrease in a liability account d. An increase in a liability account

d. An increase in a liability account

ER must store records in what form? (10.8-3/IID) a. Paper b. Micromedia c. Computer media d. Any form is acceptable

d. Any form is acceptable

When must taxes advanced by an ER on behalf of EEs during a calendar year be recovered so that the amount advanced is not included in the EE's income for the year? (3.5-2/IIIA) a. January 1 of the following calendar year b. January 31 of the following calendar year c. March 31 of the following calendar year d. April 1 of the following calendar year

d. April 1 of the following calendar year

Foreign students receiving scholarships or fellowships are not exempt from federal income tax withholding when holding what visa? a. F-1 b. J-1 c. M-1 d. B-1

d. B-1

What is the difference between the debits and credits to an account called? a. Single-entry b. Double-entry c. Cross-footing d. Balance

d. Balance

Which of the following is not a payroll department internal control? a. Segregation of duties b. Physical payouts c. Computer edits d. Balancing accounts

d. Balancing accounts

Under what law are ERs required to extend health care coverage to terminated EEs? (4.1-5/IIB) a. OBRA '89 b. TAMRA '88 c. OBRA '87 d. COBRA '85

d. COBRA '85

Under the FLSA, which of the following records must be kept for more than two years from the last date they were in effect? a. Wage rate tables b. Piece rate tables c. Work time schedules establishing the hours and days of employment d. Collective bargaining agreements

d. Collective bargaining agreements

Managers are involved in all of the following processes as part of their managerial responsibilities other than: a. Planning b. Organizing c. Directing d. Completing tasks

d. Completing tasks

What law governs the maximum amount that can be withheld from an EE's wages for spousal or child support? a. Family Support Act of 1988 b. Omnibus Budget Reconciliation Act of 1993 c. Child Support Enforcement Amendments of 1984 d. Consumer Credit Protection Act

d. Consumer Credit Protection Act

Which of the following laws restricts states in their regulation of creditor garnishments? a. Fair Labor Standards Act b. Omnibus Budget Reconciliation Act of 1993 c. Family Support Act of 1988 d. Consumer Credit Protection Act

d. Consumer Credit Protection Act

Which of the following costs is not a reasonable housing expense? a. Occupancy taxes b. Fees paid for securing a house c. Furniture rental d. Cost of domestic labor

d. Cost of domestic labor

What journal entry is made to record the deposit of federal income tax? a. Debit payroll taxes expense, credit federal income tax payable b. Debit cash, credit federal income tax payable c. Credit payroll taxes expense, debit cash d. Debit federal income tax payable, credit cash

d. Debit federal income tax payable, credit cash

Where does the hiring process begin? a. Decision not to fill a position b. Decision not to create a position c. Decision not to analyze a job d. Decision to terminate the incumbent

d. Decision to terminate the incumbent

Which of the following entries would be posted as a credit? (11.2/VIIA) a. Increase in an asset account b. Decrease in a liability account c. Increase in an expense account d. Decrease in asset account

d. Decrease in asset account

What is the place the EE intends to return to after a foreign assignment? a. Tax home b. Vacation home c. Residence d. Domicile

d. Domicile

In which of the following situations may an EE claim to be exempt from FIT withholding on Form W-4? (6.3-1/IIB) a. EE is not a US citizen b. EE pays estimated quarterly taxes c. EE claims numerous exemptions and consequently will not incur a tax liability d. EE did not incur tax liability in the preceding year and does not expect to incur tax liability in the current year

d. EE did not incur tax liability in the preceding year and does not expect to incur tax liability in the current year

If an ER has made timely deposits of its full FUTA tax liability, what is the Form 940 due date? a. January 10 b. January 15 c. January 31 d. February 10

d. February 10

Distributions from retirement plans and payments of matured annuity, endowment, and life insurance contracts must be reported on what form? a. Form W-2P b. Form W-2 c. Form W-3 d. Form 1099-R

d. Form 1099-R

What form is used to request a credit for overpaid taxes? a. Form 941 b. Form 843 c. Form 940 d. Form 941-X

d. Form 941-X

What form is used to report backup withholding? a. Form 941 b. Form 944 c. Form 943 d. Form 945

d. Form 945

When an ER has been unable, after a reasonable effort, to deliver an EE's copies of Form W-2, how long must it keep those copies or be able to reproduce the electronic file containing the EE's W-2 information? a. Five years b. Three years c. Two years d. Four years

d. Four years

Which of the following visas is an immigrant visa? a. B-1 b. F-1 c. H-1 d. I-551

d. I-551

Where should negative feedback be given? a. Where everyone can benefit from hearing it b. Negative feedback should never be given c. Directly to the HR dept d. In private to the worker

d. In private to the worker

All of the following behaviors are common mistakes to avoid when selecting a new system except: a. Making decisions w/o sufficient input b. Failing to consider all the costs associated c. Not considering future company needs regarding expansion and downsizing d. Including personnel from all related departments on the project team

d. Including personnel from all related departments on the project team

What effect does revenues have on accounts? a. Increasing expenses b. Decreasing liabilities c. Decreasing owner's equity d. Increasing owner's equity

d. Increasing owner's equity

All of the following steps are taken when recruiting for a new EE except: (13.2-2/VC) a. Writing a job description b. Evaluating candidates c. Interviewing d. Introducing the candidate to all EEs

d. Introducing the candidate to all EEs

If a pension recipient fails to complete Form W-4P, what withholding status must be used by the payer to calculate withholding? a. Single, with 0 allowances b. Single, with 1 allowances c. Married, with 0 allowances d. Married, with 3 allowances

d. Married, with 3 allowances

If an ER that hires EEs in more than one state wants to report all its new hires to just one state, it can request permission to do so by filing the following form with the Dept of Health and Human Services: a. Form W-4, EE's Withholding Allowance Certificate b. Form W-9, Request for Taxpayer Identification Number and Certification c. Multiple Worksite Report d. Multistate ER Notification Form for New Hire Reporting

d. Multistate ER Notification Form for New Hire Reporting

What tax withholding, if any, is required when unpaid wages due an EE at death are paid to the EE's estate in a calendar year subsequent to the EE's death? (3.4-30/IIIB) a. FICA only b. FIT only c. FICA and FIT d. No tax withholding is required

d. No tax withholding is required

Tammy selects a dependent care package from her ER's cafeteria plan. The cost of the package is $200 per month. Tammy's ER pays $150 per month to her cafeteria plan and Tammy defers part of her salary to pay the difference. What taxes must the ER withhold? a. FIT and FICA from the ER contribution b. FIT and FICA from the EE contribution c. FIT and FICA from both the ER and EE contributions d. No taxes must be withheld from either the ER or EE contributions

d. No taxes must be withheld from either the ER or EE contributions

Which of the following agencies made it necessary for NACHA to adopt rules creating special requirements for International ACH Transactions? a. Internal Revenue Service b. Federal Reserve Board c. Department of State d. Office of Foreign Assets Control

d. Office of Foreign Assets Control

What is the penalty for failure to file Form W-2 electronically when required? (8.14/IIE) a. $5.00 per statement to a maximum of $100,000.00 b. $5.00 per statement to a maximum of $200,000.00 c. $5.00 per statement to a maximum of $20,000.00 d. Penalty is dependent upon number of days correctly filed W-2s are late

d. Penalty is dependent upon number of days correctly filed W-2s are late

What is the most successful strategy for motivating EEs? a. Taking notice of negative behavior only b. Not providing positive feedback c. Realizing an EE is not a "team player" d. Rewarding an EE's positive behavior

d. Rewarding an EE's positive behavior

An EE is supposed to receive his last paycheck of $1,500 for 2019 on Thursday, December 26. Because of a system failure, paychecks are not available until Thursday, January 2, 2020. Before December 26, the EE's 2019 earnings were $132,200. How much social security and Medicare taxes must be withheld? a. SS $43.40, Med $21.75 b. SS $93, Med $0 c. SS $0, Med $21.75 d. SS $93, Med $21.75

d. SS $93, Med $21.75

In the modern audit process how does testing occur? a. Checking every transaction b. Checking those transactions indicated by the company c. Checking similar transactions to the last audit d. Sampling

d. Sampling

All of the following features are disadvantages of an in-house computer system except: a. High fixed costs b. Additional staffing c. Sufficient secure space needed d. Scheduling flexibility

d. Scheduling flexibility

All of the following payments are subject to SS tax except: (4.3-1/IIIA) a. Dismissal payments b. Tips exceeding $20.00 per month c. EE's elective deferral to a 401(k) plan d. Sick-leave payments after six calendar months of absence from work

d. Sick-leave payments after six calendar months of absence from work

At the start of the year, Donna elects to buy medical and dental insurance as part of her company's cafeteria plan. During the year Donna gets married and her husband has full medical and dental insurance which can be extended to cover his whole family. Donna wants to replace the medical and dental insurance with group-term life insurance. Which of the following statements is true? a. If the amount is not spent by the end of the year, it has to be forfeited b. The replacement package becomes fully taxable c. Once selected, benefits cannot be changed during the plan year d. Since Donna has had a change in status and her new election is consistent with that change, this option is available to her

d. Since Donna has had a change in status and her new election is consistent with that change, this option is available to her

A newly hired EE who is married with two children fails to complete Form W-4 by his first payday. What withholding status does the ER use when calculating the EE's withholding? a. Married, with 2 allowances b. Married, with 3 allowances c. Single, with 2 allowances d. Single, with 0 allowances

d. Single, with 0 allowances

Which account has an entry when the deposit of state income tax withheld is made? a. EEs' income tax payable b. Payroll tax expenses c. State tax expense d. State income tax payable

d. State income tax payable

If an ER overwithholds FIT from its EEs' wages and discovers the error after filing Form 941 for the quarter during which the error was made but before the end of the year, which option is not available to the ER? a. The ER may reimburse the EE for the overwithheld amount b. The ER may reduce future withheld taxes during the same calendar year that the error occurred c. The ER may apply the overwithheld amount to the next calendar quarter in the same year that the error occurred d. The ER may apply the overwithheld amount to the following year to reduce the amount withheld in the new year

d. The ER may apply the overwithheld amount to the following year to reduce the amount withheld in the new year

What is the FLSA salary test for outside salespersons? a. $425 per workweek b. $250 per workweek c. $455 per workweek d. There is no salary minimum

d. There is no salary minimum

The statement "the only people who can manage time are those who use it well," defines an application of what skill? a. Planning b. Organizing c. Good meeting skills d. Time management

d. Time management

What is the purpose of an accrual? (11.5/VIIA) a. To allow adjustments to budgets b. To spread large payments over 12 months c. To offset debits and credits as they are incurred d. To assign revenue and expenses to the period in which they are earned or incurred

d. To assign revenue and expenses to the period in which they are earned or incurred

What is the PRIMARY purpose of internal audits? (11.8/VIE) a. To balance all accounts b. To avoid posting errors in expense accounts c. To prepare manual entries to the general ledger d. To comply with corporate and legal requirements

d. To comply with corporate and legal requirements

When the IRS publishes regulations they are coded "T.D." What does T.D. stand for? a. Tax Data b. Tax Development c. Technical Decision d. Treasury Decision

d. Treasury Decision

To which taxes are payments received as workers' compensation subject? a. FICA only b. FIT only c. FICA and FIT d. WC benefits are not taxable

d. WC benefits are not taxable

Under which of the following situations may all health insurance premiums paid be excluded from the EE's income? (4.1-2/IIIA) a. When the EE pays the premium directly to the insurance company b. When the EE and ER share the premium c. When the ER withholds the premium d. When the ER pays the premium

d. When the ER pays the premium

David has a child and dependent care expenses of $6,500 during 2019, and his ER reimburses him in full during the same year. How much of the reimbursement is taxable to David for 2019? A. $1,500 B. $5,000 C. $6,500 D. None of it is taxable

A. $1,500

Emma, a sales representative, receives a $1,500 bonus in December 2019 for outstanding performance. The bonus is supplemental wages subject to federal income tax withholding at a flat 22% rate; the social security tax rate is 6.2%, and the Medicare tax rate is 1.45%. Assuming there are no state or local taxes and that Emma has received wages of $100,000 during the year so far, what is the amount Emma must be paid to guarantee her a net bonus of $1,500. A. $2,132.20 B. $2,039.43 C. $2,227.17 D. $2,162.94

A. $2,132.20 $1,500/.7035 = $2,132.20