Question :
41. Redford’s salary was $124,000 in 2014. What would his total : 1313604
41. Redford’s salary was $124,000 in 2014. What would his total combined FICA tax (OASDI& Medicare) withheld from his salary be for the year?
a. $8,951
b. $9,052
c. $9,486
d. $10,000
e. None of the above is correct
42. Elwin worked at three jobs during 2014. He earned $30,000, $27,000, and $9,000, respectively, from the jobs. What amount can Elwin apply as a credit against his 2014 income tax liability for overpayment of FICA taxes?
a. $0
b. $91.80
c. $45.90
d. $37.20
e. None of the above
43. Which of the following statements about the FICA tax is not true?
a. The FICA tax is composed of two parts, Social Security and Medicare.
b. Self-employed individuals may elect to pay either FICA taxes or self-employment taxes.
c. FICA taxes are paid by both the employees and their employers.
d. The income amount subject to FICA tax has increased significantly over the years.
e. Wages subject to FICA tax that are received by a self-employed individual reduce the individual’s maximum self-employment tax base.
44. The Pear Corporation pays its employees every 2 weeks. During the look-back period, in each pay period the total withholding and FICA tax (employees’ and employer’s share) amounted to $750. How often must the Pear Corporation deposit payroll taxes?
a. Annually
b. Monthly
c. Quarterly
d. Daily
e. None of the above
45. Which one of the following payroll tax deposit schedules is not a rule that applies for a class of employers?
a. One-day deposit rule
b. Eight-day deposit rule
c. Semi-weekly deposit rule
d. Monthly deposit rule
e. Yearly deposit rule
46. Which one of the following forms must an employer provide to his employee by January 31 of the following year?
a. W-3
b. W-2
c. W-4
d. 941
e. 1040
47. Which of the following forms should be used by a company to report a payment of $1,500 to a computer consultant who is not an employee of the company?
a. Form 1099-INT
b. Form W-4
c. Form W-2
d. Form 1099-DIV
e. Form 1099-MISC
48. Form 1099-DIV is an information return used to show the payment of:
a. Distributions from a partnership.
b. Interest.
c. Dividends.
d. Unemployment compensation.
e. None of the above.
49. Dividends paid to a shareholder by a corporation should be reported on which of the following forms?
a. 1099-INT
b. 1099-DIV
c. 1099-MISC
d. 1099-R
e. None of the above
50. Which of the following statements is true with regard to the reimbursement of employee business expenses?
a. Reimbursements of ordinary and necessary expenses are subject to federal income tax withholding.
b. Excess reimbursements of ordinary and necessary expenses are never subject to withholding.
c. Reimbursements received by an employee under a plan which contains a requirement to return excess amounts, and the employee does so, are automatically excluded from the definition of wages subject to withholding.
d. Provided that reimbursements are received by an employee under a plan which requires the employee to substantiate the expenses to his employer, the amounts are automatically excluded from the definition of wages subject to withholding, without regard to whether the employee actually substantiates the expenditures.
e. All of the above are true statements.
