1

2

Form _____ is provided to an iindependent contractor to advise them of their total annual earnings.

W-9

1099-MISC

1040

W-2-MISC

2

2

Form 1096 is completed by an employer and submitted to the IRS for what purpose?

To report all expenses incurred by and reimbursed to an independent contractor.

To report all overtime paid to all independent contractors.

To report the total annual earnings for a single independent contractor.

To report the total of all compensation paid to all independent contractors during the year.

3

2

SECA stands for __________.

Self-Employed Control Act

Self-Employed Contributions Act

Self-Employed Care Act

Self-Employed & Charities Act

4

2

What is the due date for the first quarter FUTA tax?

April 30

April 15

March 30

None of the above

5

2

What is the full self-employment tax rate?

7.65%

13.85%

15.3%

12.4%

6

2

What is the standard credit applied to the FUTA tax rate in non-credit reduction states?

6.0%

0.6%

5.4%

0.9%

7

2

What is he FUTA tax rate in a state that has a 0.6% credit reduction?

1.5%

4.8%

1.2%

1.8%

8

2

If an employee working in a non-credit reduction state has year-to-year earnings subject to FUTA tax of $6,450 prior to the current period, and earns $825 during the current period, what is the associated FUTA tax owed by the employer.

$29.70

$4.95

$0

$3.30

9

2

What would the FUTA and SUTA tax be for an employee whose year-to-date earnings prior to the current period are $12,400, who earns $1,500 during the current period, who works in a state with a credit reduction of 0.6%, and whose state imposes a SUTA tax rate of 2.5% with an associated wage base of $12,600?

FUTA - $9; SUTA $37.50

FUTA - $0; SUTA $5

FUTA - $18; SUTA $5

FUTA - $0; SUTA $6.20

10

2

What is the self-employment tax rate that is applied to earnings that exceed $127,200 in a single year?

1.45%

12.4%

15.3%

2.9%

11

2

FUTA tax payments must be made at the end of a quarter when the total tax owed exceeds what amount?

$7,000

$117,000

$500

$400

12

2

If an employee has $43.50 withheld for regular Medicare tax, then (in addition to this amount) the employer must also remit _____ for its portion of Medicare taxes.

$21.75

87.00

$0

$43.50

13

2

How much FUTA tax would an employer in a non-credit-reduction state owe if an employee has earned $6,400 to date and has current period taxable pay of $1,500?

$90.00

$36.00

$3.60

$9.00

14

2

Which of the following is an accurate statement about SUTA tax?

Every state designates a taxable earnings threshold over which SUTA tax is not levied.

SUTA tax rates differ from one employer to another, but do not change from year to year.

The SUTA tax rate is based on the number of layoffs and an employer has experienced.

SUTA tax paid by an employer is typically less than FUTA tax paid for the same period.

15

2

If a state is subject to a credit reduction, its employers will pay a(n) _____ FUTA rate in comparison to the previously effective rate.

Variable

Identical

Higher

Lower

16

2

Which of following employee taxes is matched by the employer?

State unemployment tax

Federal income tax

Medicare tax

Federal unemployment tax.

17

2

Currently the employer's Social Security tax:

is the same as the employee's Social Security tax.

can be any of the above.

is less than the employee's Social Security tax

is greater than the employee's Social Security tax

18

2

FUTA tax is paid solely by the employer.

True

False

19

2

The credit for FUTA tax must equal the applicable SUTA tax rate for the employer.

True

False

20

2

FUTA credit reductions are assessed as a result of individual states neglecting to repay federal loans in a timely manner.

True

False

21

2

For employers who do not have a track record with employees, a New Employer SUTA tax rate is assigned.

True

False

22

2

It is possible for an employer to pay FUTA tax on a specific employee's pay, while not paying SUTA tax on the same employee's pay.

True

False

23

2

The self-employment tax rate is the same as the combined employee ad employer FICA tax rates.

True

False

24

2

Like the FUTA tax, the State Unemployment Tax is based on employees' taxable earnings.

True

False

25

2

In addition to the employee paying Social Security & Medicare tax, the employer presently must pay an equal amount of these taxes for each employee.

True

False