1) If an employee does not complete a Form W-4, the employer must withhold tax as if the employee were single with no exemptions.

True

False

2) Mark the incorrect answer. In completing W-4 Forms, employees may claim extra allowances

		If they are paying alimony.
		If they have tax credits.
		If they expect to have large amounts of itemized deductions.
		If they have high levels of interest and dividend income. 3) If an individual taxpayer's quarterly estimated tax payments plus payroll withholdings equal or exceed 100% of the prior year tax liability, the taxpayer will not be subject to the penalty for underpayment of estimated tax. True False 4) Current compensation is usually comprised of salary, wages, bonuses and interest earned on those amounts once deposited. True False 5) Employees complete a Form W-2 to specify their income tax withholding. True False 6) On Form W-4, an employee can only claim one allowance for each personal or dependency exemption that will be claimed on the employee's income tax return. True False