Payroll Chapter 5
Partnerships do not have to pay unemployment taxes on the wages of their employees.
False
There is a uniform rate of unemployment benefits payable by all states.
False
Unemployment taxes (FUTA and SUTA) do not have to be paid by an employer who has only part-time employees.
False
Unlike Form 941, there is no penality for the late filing of Form 940.
False
In the case of a part-time employee, the employer pays a FUTA tax on only the first $14,000 of earnings (double the regular limit).
False, ($7,000 taxable wages)
For FUTA purposes, an employer must pay a higher FUTA tax rate on executives than on nonsupervisory personnel.
False, (rate is the same .006 on all payroll)
"Dumping" is legal in all but a few states.
False, Illegal in every state.
Form 940 must be efiled or mailed to the IRS by January 15.
False, January 31st not the 15th
If an employer pays unemployment taxes in two states, it will have the same SUTA tax rate in both states
False, each state has it's own percentage
Every employer is entitlesd to a 5.4 percent credit against the gross FUTA tax of 6 percent.
False, not every employer, but most employers
If an employee works in more than one state, the employer must pay a seperate SUTA tax to each of those states in which the employee earns wages.
False, only pay to one state, 4 steps to determine which state to pay to
Retirement pay is taxable wages for FUTA purposes.
False, only subject to fed
Currently, none of the states imposes an unemployment tax on employees.
False, some states do but not all
FUTA tax deposits cannot be paid electronically.
False, they are required to be paid electronically (you can mail the form, but have to make payment online)
Once a company attains the status of employer for FUTA purposes, that status continues for four calendar years.
False, until nature of business changes or closes
On Form 940, even if the total FUTA tax is more than $500, there is no listing of quarterly federal unemployment tax liabilites.
False, you do have to list the quarterly liabilities
A traveling salesperson who solicits and transmits to the principal orders for merchandise for resale is considered an employee under FUTA.
True
Christmas gifts, excluding noncash gifts of nominal value, are taxable wages for unemployment purposes.
True
Directors of corporations who only attend and participate in board of directors meetings are not covered as employees under FUTA.
True
In most states, the contribution reports and the wage information reports are filed quarterly.
True
In some states, employers may obtain reduced unemployment compensation rates by making voluntary contributions to the fund.
True
Insurance agents paid solely on a commission basis are not considered employees under FUTA.
True
Services performed by a child under the age of 21 for a parent-employer are excluded from FUTA coverage.
True
Services performed in the employ of a religious organization that is exempt from federal income tax are also exempt from FUTA coverage.
True
The Social Security Act ordered every state to set up an unemployment compensation program.
True
The mailing of Form 940 is considered timely if it is postmarked on or before the due date.
True
FUTA and SUTA coverages extend to U.S. citizens working abroad for American employers.
True, (American employers)
In order to obtain the manimum credit allowed against the federal unemployment tax, the employer must have paid its SUTA contributions by the due date of Form 940.(January 31)
True, (if not paid by Jan. 31, you lose the credit)
If an employee has more than one employer during the year, the taxable wage base applies separately to each of those employers, unless one employer has transfered the business to the second.
True, 2 seperate jobs, not the same job that went from one owner to another
Educational assistance payments made to workers to improve skills required of their jobs are nontaxable for unemployment purposes.
True, if company is paying schooling for you to imporve skills for amployment with them
If an employer is subject to a credit reduction because of Title XII advances, the penalty for the entire year will be paid only with the deposit for the last quarter of the year.
True, the credit reduction is not due until the end of the year
Advance payments for work done in the future are not taxable wages for FUTA purposes.
False
Even if a state repays its Title XII advances, all employers in that state are subject to a credit reduction in the year of the advance.
False
For FUTA purposes, the cash value of renumeration paid in any medium other than cash is not considered taxable wages.
False
If an employer's quarterly tax liability is $525, it must be paid on or before the last day of the month following the end of the quarter.
True, under $500 you can carry it to the end of the next quarter unless it is the end of the year (you cannot carry the fourth quarter into the next year)