1. Employees claim withholding allowances on Form W-4. Each withholding allowance claimed lowers their annual withholding base by what amount for calendar year 2015?

a. $3,850.

b. $3,900.

c. $3,950.

d. $4,000.

2. Erica earned $118,800 during 2015. How much will her employer withhold from her, in total, for FICA taxes?

a. $9,027.00.

b. $9,065.25.

c. $9,069.60.

d. $9,088.20.

3. Carlos earned a total of $225,000 for 2015. How much in FICA tax will his employer be required to withhold in his name?

a. $10,609.50

b. $10,834.50.

c. $11,680.00.

d. $12,634.50.

4. Dewoun has two jobs, and both employers withheld FICA tax. From his first job, he earned $92,100, and from his second job, he earned $28,200. How much can Dewoun claim as an additional payment on his Form 1040 as excess social security paid in 2015?

a $0.

b. $111.60.

c. $124.00.

d. $137.70.

5. Household employees are subject to FICA withholding if they are paid at least what amount during any calendar quarter in 2015?

a. $1,000.

b. $1,500.

c. $1,800.

d. $1,900.

6. Employers pay a maximum federal unemployment tax of 6.0% on how much of an employee's taxable wages for 2015?

a. $1,800.

b. $3,800.

c. $5,800.

d. $7,000.

7. Carol works for ABC Company and earned $63,000 for the entire 2015 year. How much in FUTA tax is her employer required to withhold in her name? Assume that the employer receives the maximum credit for state unemployment taxes.

a. $0 .

b. $42.00

c. $43.40.

d. $420.00.

8. On January 2, 2015, Jane employed a part-time household worker in her home. She paid the household worker $350 per month for 2015. What amount of FICA tax is Jane required to record on Schedule H?

a. $237.30.

b. $321.30.

c. $558.60.

d. $642.60.

9. A taxpayer with 2015 AGI of $160,000 has no income tax withholding and is required to pay estimated taxes. The taxpayer can avoid an underpayment penalty by paying

a. At least 90% of the 2015 tax liability ratably over four quarterly payments.

b. At least 110% of the 2015 tax liability ratably over four quarterly payments.

c. At least 90% of the 2014 tax liability ratably over four quarterly payments.

d. 100% of the 2015 tax liability ratably over four quarterly payments.

10. Adam received a bonus of $4,400 from his employer. Which one of the following federal income withholding tax amounts is not in accordance with IRS rules regarding supplemental wage payments? Adam earns biweekly wages of $3,500, is single, and claims one allowance. Assume his employer uses the percentage method of withholding.

a. $1,243.88 on his bonus if taxes had already been withheld from his regular pay.

b. $1,550.42 if his bonus and wages are paid on different dates within the pay period.

c. $1,752.70 if his bonus is taxed at the supplemental wage percentage and added to his regular wages paid in the same period.

d. $1,896.58 if his bonus and wages are paid at the same time during the pay period.