Wages for children who perform services in activities other than a trade or business, such as domestic services in the parent's private home, are not subject to Social Security and Medicare taxes until the child reaches age:

a) 18

b) 13

c) 16

d) 21

Wilson painted Bob's rental property this year. Wilson is a sole proprietor. Bob paid him $750 for painting the rental property. What should Bob do to properly account for this payment to Wilson?

a) Bob doesnt need to do anything except pay Wilson

b) issue a form 1099- NEC to Wilson to report the $750 payment.

c) Make one payment of $300 and one of $450 to avoid filling a Form.

d) Issue a W-2 form to Bob at the end of the year.

Which of the following forms should Bob have requested from Wilson before he paid for the painting work?

a) Form W-4

b) Form W-7

c) Form W-9

d) Form 1099-A

Joe has been a life insurance sales agent for one company for ten years and is paid on a commission basis. His employer has hired a new payroll clerk who has decided to withhold federal income taxes, Social Security taxes, and Medicare taxes from Joe's commission checks. Joe explained to the new clerk that he is not required to have federal income taxes withheld from his paycheck. Is he correct and why?

a) No; Employers must withhold these taxes from all employees.

b) Yes; Joe is an independent contractor and is not subject to any withholding taxes.

c) No; Joe is a full-time life insurance sales agent for one company, he is considered a statutory employee, and his wages are subject to federal income tax withholding.

d) Yes; Wages of statutory employees are subject to withholding of Social Security and Medicare taxes but not federal income taxes.

D. Cheryl is the new owner of a floral shop. She obtained a new EIN and she paid wages for the first time in February and March of this year. It is April 1st and she has made all required tax deposits on time. Which of the following forms should be completed and filed with the IRS?

a) Form 940

b) Form 941

c) Form 943

d) Form 940A

taves und the child icactes age (a) 14 (5) 53 (a) 14 d) 21 7. Wison ganied bobis rentat property ihit yeat, Whon is a sole prochesor. Beb nava him 5760 Wren? a) Bob doennt noed to do arybirve excect pay Wigen a) Bob doesnt moed to do arvohind excect pay wosen c) Muke one puyment of $300 and one of 5450 to wroid tiring a Form 1 cogside (f) lasue a w.2 isim lo Bet at the and ef the year. 8. Which of the following fomes shoudd nob have requeiced trom Wisco tyetore he faid for the buintisg work? a) Form Wy: b) Farm W.? c) Fom Wha d) Ferm 1090-A 9. Joe has been a ife insarance sales agent for one compary for ten years and is paid on a commissior bass. His empleyer has hired a nera payrol clerk who has decided 10 whthold federal incorne: Lames. Social Securiby. Eaxes, and Mtedicare taxes from fov's commisalon checks Joe explaines to the new clerk that he is not requicod to have fedieral incorme taxes withheld frem his parycheck is he eorect and why? a) No; Employers must withold these taxes from all employees. b) Yes; loe is an independent combractar and is not subject to any witholding taxes. c) No, Joe. is a fu bimet libe insurance soles agert for one company, he is considered a istatulory emplogee, and his wages are subject to foderal inceme tax wittholding. d) Yes, Wages of statulory employees are subject to Withoiding of socidi Securify and Modicare tanes but not federal income tames Chery is the new owner of a foral shop. She obtained a new EIN and she paid wages for the fest fine in Februay and March of this yoar. It is Apeil tst and she has made all required tor. deposits on fime. Which of the following forms should be completed and fled with the aRs? a) Form 940 b) Form 941 c) Form 943 d) Farm 940 A