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EXEMPT
401K
IRS TAX
STATE TAX
CITY TAX
100
What extent are cash tips taxed by the IRS?
What is: Cash tips of $20 or more received in a calendar month, in the course of employment with a single employer, are treated as remuneration subject to income tax withholding.
100
Is VACATION PAY exempt from FIT?
What is: NO
100
Is WEEKLY ADVANCES to a sales rep. for traveling expenses to be incurred exempt from FIT?
What is: YES
100
Is payment under a WORKER'S COMPENSATION LAW for sickness or injury exempt from FIT?
What is: YES
100
This is the aximum contribution that an employer can make to a SIMPLE account?
What is: The employer must match the employee’s contribution up to a maximum of 3% of the employee’s pay.
200
What is a PERSONAL ALLOWANCE?
What is: a deduction allowed in computing taxable income.
200
This was the amount of one (1) PERSONAL EXEMPTION for the 2009 tax year?
What is: $3,650
200
Are employer contributions into employees' HEALTH SAVINGS PLANS taxed as earnings on the employee?
What is: Employer contributions into employees’ health savings accounts are excluded from the employees’ taxable income.
200
Under what conditions may employees may be exempt from the WITHHOLDING of FIT during 2009?
What is: Employees who had no income tax liability in 2009 and do not expect to have any for 2010 qualify for exemption from withholding of federal income tax from their wages. Single persons who made less than $9,350 in 2009 owed no federal income tax. During 2009, a married couple entitled to file a joint return could earn combined wages up to $18,700 without incurring any federal income tax liability.
200
How does employees indicate their NO-TAX-LIABILITY status?
What is: Employees who are exempt from the withholding of federal income taxes should complete and submit to their employer Form W-4 showing the exempt status.
300
How is the SPECIAL PERIOD RULE for the reporting of fringe benefits applied?
What is: The special period rule allows employers to use October 31 as the cutoff date for valuing noncash fringe benefits. This means that fringe benefits received in November and December can be treated as being received in the following year.
300
What procedure should be followed if a Pension Recipient do not want FIT withheld from benefits?
What is: By so indicating on Form W-4P, Withholding Certificate for Pension or Annuity Payments.
300
Rhonda Gramm is single, and is paid weekly. Under the % METHOD, what is the amount her 1 weekly WITHHOLDING ALLOWANCE? Also, Howard is married, two allowances, and he's paid semi-monthly. What is his total withholding allowance?
What is: Rhonda..........$70.19 Howard..........$304.16 ($152.08 × 2)
300
What FORMULA is used to GROSS UP supplemental payments in order to cover the taxes?
What is: The formula is: Intended payment / 1 – Applicable tax rates
300
What easy method may be used to determine the amount of FIT to be withheld from annual BONUS PAY?
What is: The employer may elect to withhold a flat 25 percent of the bonus payment.
400
These are the sources where employers obtain funds needed to make advance EIC payments to eligible employees.
What is: Advance EIC payments made by the employer are treated as having been made from amounts withheld as income tax, employee FICA taxes, and employer FICA taxes.
400
This is the Form that replaces Form 941 for employers who owe $1,000 or less in employment taxes for the year, and this Form has to be filed only once a year.
What is: What is Form 944?
400
Employers who are required to prepare information returns (Form 1099 series) must file a Form to transmit each type of information return. For example, one of these Forms is filed to transmit all Forms 1099-MISC.
What is: What is FORM 1096?
400
What is the penalty for filing W-2s with mis-matched names and social security numbers?
What is: The penalty is $50 per form.
400
These are the only conditions when employers must submit copies of Form W-4 to the IRS.
What is: Employers need to submit only those W-4s that are requested in writing by the IRS.
500
How is the amount by which a fringe benefit that is taxable to an employee determined?
What is: The amount by which the fair market value of the fringe benefit exceeds what the employee paid.
500
Determine the amount of FIT by considering pay period, amount, marital status, number of exemptions; and using the appropriate table supplied by the IRS to match pay with exemptions.
What is: THE WAGE BRACKET METHOD of withholding FIT?
500
This is your PAY - (EXEMPTIONS x ALLOWANCES) - AMOUNT ON LEFT SIDE OF TABLE X % IN THE ROW; + AMOUNT TO LEFT OF % IN THE SAME ROW.
What is: The percentage method of withholding FIT?
500
The method of determining the amount of income taxes to be withheld by multiplying the wages for one payroll period by the number of periods in the year.
What is: ANNUALIZING WAGES
500
These are the penalties imposed on employees for filing false information on form W-4...
What is: Employees who willfully file false Forms W-4 are subject to fines of up to $1,000 or imprisonment for up to one year or both. A $500 civil penalty for each offense is imposed on employees claiming excess deductions.