1- A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee in all but one of the following situations. In which situation would thisnotbe required?

a.A baby-sitter who earns $1,300 a year

b.A cleaning lady who is paid $8,000 a year

c.A cook who is paid $35,000 a year

d.A nanny who earns $22,000 a year

e.The taxpayer would not have to pay Social Security and Medicare taxes in any of these situations.

2-Mark theincorrectanswer. Estimated income tax payments:

a.May be based on the amount of the tax liability for the prior year.

b.Are made in four installments on April 15, June 15, and September 15 of the tax year and on January 15 of the following year.

c.Need not be filed if the estimated tax, after subtracting withholding, can reasonably be expected to be more than $1,000.

d.If inadequate, may result in nondeductible penalties.

3- Which of the following statements about the FICA tax isnottrue?

a.FICA taxes are paid by both the employees and their employers.

b.The income amount subject to FICA tax has increased significantly over the years.

c.Self-employed individuals may elect to pay either FICA taxes or self-employment taxes.

d.Wages subject to FICA tax that are received by a self-employed individual reduce the individual's maximum self-employment tax base.

e.The FICA tax is composed of two parts, Social Security and Medicare.

4- Which of the following forms is used by an employer to report quarterly wages and federal payroll tax withholdings and deposits?

a.Form 1099

b.Form 941

c.Form W-2

d.Form 940

e.None of these choices are correct.

5- Elwin worked at three jobs during 2016. He earned $30,000, $27,000, and $9,000, respectively, from the jobs. What is the total amount of FICA tax that would have been withheld from Elwin's wages?

a.$5,003.10

b.$4,092.00

c.$4,054.80

d.$5,049.00

e.None of these choices are correct

6- For 2016, the maximum base amount for computing the Medicare portion of the self-employment tax is $150,000.

True

False