Question : 51. Which of the following forms used by an employer to : 1313605

51. Which of the following forms is used by an employer to report quarterly wages and federal payroll tax withholdings and deposits?

a. Form 940

b. Form 941

c. Form 1099

d. Form W-2

e. None of the above

52. Which of the following items may be subject to the self-employment tax?

a. A partner’s distributive share of partnership income

b. Dividend income

c. Capital gains

d. Interest income

e. None of the above

53. Which of the following types of income is subject to the self-employment tax?

a. Interest income

b. Gain on sale of real estate

c. Income from a sole proprietor’s law practice

d. Dividends from stock

e. None of the above

54. Mark the correct answer. Self-employment taxes:

a. Consist of a Medicare tax and a Social Security tax.

b. Are not affected by wages the taxpayer earns as an employee.

c. Apply to taxpayers with less than $400 in self-employment earnings.

d. Are calculated based on unearned income such as interest and dividends as well as net earnings from self-employment.

55. The FUTA tax is paid by:

a. Employees only.

b. Employers only.

c. Employers and employees.

d. Neither employers nor employees.

e. The federal government.

56. In 2014, Willow Corporation had three employees. Two of the employees worked full-time and earned salaries of $25,000 each. The third employee worked only part-time and earned $3,000. The employer timely paid state unemployment tax equal to 5.4 percent of each employee’s wages up to $7,000. How much unemployment tax was paid to the state from Willow Corporation for 2014?

a. $136

b. $168

c. $918

d. $1,134

e. None of the above

57. In 2014, Willow Corporation had three employees. Two of the employees worked full-time and earned salaries of $25,000 each. The third employee worked only part-time and earned $3,000. The employer timely paid state unemployment tax equal to 5.4 percent of each employee’s wages up to $7,000. How much FUTA tax is due from Willow Corporation for 2014, after the credit for state unemployment taxes?

a. $0

b. $102

c. $168

d. $918

e. None of the above

58. Oliver has two employees who earned the following amounts during 2014: 

June$17,000

Eric$ 5,000

If Oliver timely pays 5.4 percent for state unemployment tax, what is the amount of his 2014 FUTA after the state tax credit?

a. $0

b. $72

c. $112

d. $176

e. None of the above

59. George has four employees who earned $75,000, $27,000, $2,100, and $6,200 during 2014, respectively. He paid 5.4 percent for state unemployment tax. How much FUTA tax will George owe for the four employees?

a. $133.80

b. $882.40

c. $321.60

d. $224.00

e. $163.70

60. A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee in all but one of the following situations. In which situation would this not be required?

a. A nanny who earns $22,000 a year

b. A baby-sitter who earns $1,300 a year

c. A cook who is paid $35,000 a year

d. A cleaning lady who is paid $8,000 a year

e. The taxpayer would not have to pay Social Security and Medicare taxes in any of the above situations

61. Melody and Todd are married and have employee wages of $250,000 each in 2014. They have no other income. How much additional 0.9% Medicare surtax will Melody and Todd have to pay or receive as a refund when they file their 2014 income tax return?

a. $1,350 will be due with their return in addition to amounts withheld.

b. $1,350 will be refunded with their return.

c. $900 will be refunded with their return.

d. $3,600 will be due with their return in addition to amounts withheld.

62. Peter and Joan are married and Joan has self-employment income of $240,000. Peter is retired. How much additional 0.9% Medicare surtax will Peter and Joan owe with their 2014 income tax return?

a. $360

b. $2,160

c. $0

d. They will receive a $90 refund