Which of the following amounts paid by an employer to an employee is not subject to withholding?
a. Salary
b. Bonus
c. Commissions
d. Reimbursement of expenses under an accountable plan
e. All of the above are subject to withholding
2. Abbe, age 56, is married and has three dependent children over age 17. Abbe has one job, and her husband, age 58, is not employed. How many allowances should Abbe claim on her Form W-4 for 2014?
a. 3
b. 4
c. 5
d. 6
e. 7
3. Michele is single with no dependents and earns $23,000 this year. Michele claims sixteen allowances on her Form W-4 for 2014. Which of the following is correct concerning her Form W-4?
a. Michele may not under any circumstances claim sixteen allowances.
b. Michele’s employer will require her to verify her right to claim sixteen allowances.
c. Michele’s employer will disregard her Form W-4 and withhold as single with no allowances.
d. Michele’s employer will submit a copy of her W-4 to the IRS if directed to do so by written notice.
e. None of the above is correct.
4. Estimated payments for individual taxpayers are due on the following dates:
a. Twice a year on April 15 and September 15
b. Four times a year on April 15, June 15, September 15, and January 15 of the next year
c. Four times a year on April 15, July 15, September 15, and December 15
d. Twice a year on June 15 and December 15
5. Which of the following is not true about FICA taxes?
a. The FICA tax has two parts, Social Security (Old Age, Survivors, and Disability Insurance) and Medicare (hospital insurance).
b. In 2014, the maximum wage base for Social Security tax withholding is $117,000.
c. In 2014, there is no maximum wage base for Medicare tax withholding.
d. When employees work for more than one employer and exceed the maximum wage base for Social Security tax withholding in total, they are not allowed a refund of excess tax withheld.
6. Employers must file a quarterly tax return showing the amount of wages paid and the amount of income tax and FICA tax withholding due. This tax return is filed on:
a. Form 944 or Form 945
b. Schedule H
c. Schedule SE
d. Form 941
7. Which of the following forms would a lottery winner receive for her winnings?
a. Form W-4
b. Form W-2G
c. Form 1099-DIV
d. Form 1099-R
e. Form 1099-MISC
8. For 2014, Roberta is a self-employed truck driver with earnings of $43,000 from her business. During the year, Roberta received $2,500 in interest income and dividends of $500. She also sold investment property and recognized a $1,500 gain. What is the amount of Roberta’s self-employment tax (Social Security and Medicare taxes) liability for 2014?
a. $3,038
b. $3,290
c. $6,076
d. $6,579
e. None of the above