Solutions 21-24

21. Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter. The latest date on which she may file Form 941 is: a. April 10 b. April 30 c. May 1 d. May 10 e. May 15 22. Barr fails to make a timely deposit of FICA taxes and withheld income taxes until five days after the due date. The penalty facing Barr is: a. 2% of the undeposited taxes. b. 5% of the undeposited taxes c, 10% of the undeposited taxes. d. 25% of the undeposited taxes. Arch gives you an amended Form W-4 dated March 11, 20 which he claims two additional withholding allowances. He n you to refund the excess taxes that were deducted from January to March 11 when Arch claimed only one withholding allowance. You should a. repay the overwithheld taxes on Arch's next payday. b. Tell Arch that you will spread out a refund of the overwithheld taxes equally over the next six pays c. Inform Arch that you are unable to repay the overwithheld taxes that were withheld before March 11 and that the adjustment will have to be made when he files his annual income tax return. March 11, 2016, on 23. d. Tell Arch to write the IRS immediately and ask for a refund of the overwithheld taxes. e. Inform Arch that you will appoint a committee to study his request. 24. Beech refuses to state her marital status on Form W-4 which she gave to you, the payroll manager, when she was hired. You should: a. tell Beech that it is OK since you know that she was recently divorced and is reluctant to talk about it. b. Inform Beech that she will have to write the IRS and give her reasons for refusing to state her marital status. c. Tell Beech that you will have to withhold income taxes as if she were married and had claimed one allowance. d. Tell Beech that you will have to withhold income taxes according to the withholding table for a single employee with no allowances e. Advise Beech to write "It is no business of yours." In the margin of her Form W-4