Multiple choice Questions
1. In a large food or beverage establishment, any tip shortfall from a directly tipped employee is recorded on the employee’s W-2 as
a. W-2 box 1- Wages, tips, other compensation.
b. W-2 box 14 - Other.
c. W-2 box 8 - Allocated tips.
d. W-2 box 7 - Social security tips.
2. Employers with a payroll tax liability of less than $2,500 at the end of any quarter must pay their tax liability
a. Directly to the authorized depository after the end of the quarter when Form 941 is filed.
b. Directly to the authorized depository on the same day the Form 941 is mailed.
c. Directly to the Internal Revenue Service when they file Form 941.
d. Directly only if they use the EFTPS form of payment before Form 941 is filed.
3. Lauer Company started its business on July 25, 2014. On August 15, it paid wages for the first time and accumulated a tax liability of $48,000. On Friday, August 22, it incurred a tax liability of $52,000. How is Lauer Company treated as a depositor?
a. Monthly because new companies do not have a lookback period.
b. Semiweekly because its accumulated tax liability is $100,000.
c. Monthly because its accumulated tax liability is not more than $100,000 on any one day.
d. Semiweekly for this pay period only and then monthly for the remainder of the year.
4. What is the penalty for sending a required tax payment (unless specifically excluded) directly to the Internal Revenue Service?
a. 2% .
b. 5%.
c. 10%.
d. 15%.
5. A semiweekly schedule depositor’s payroll period ends and is paid on Friday, June 25. The depositor (employer) must deposit the federal taxes for this pay period on or before
a. June 26.
b. June 28.
c. The following Wednesday.
d. The following Friday.
6. To what amount of employer tax accumulation does the one-day deposit rule apply?
a. $75,000.
b. $100,000.
c. More than $100,000.
d. An amount between $75,000 and $99,999.
7. Employers are required to deposit FUTA taxes when their liability exceeds
a. $100.
b. $500.
c. $1,000.
d. $1,500.
8. Household employees are subject to FICA withholding if they are paid at least what amount during any calendar quarter in 2014?
a. $1,000.
b. $1,500.
c. $1,800.
d. $1,900 .