Mod 7 payroll accounting quiz
1. A federal unemployment tax is levied on:
A)
employees only.
B)
both employers and employees.
C)
employers only.
D)
government employers only.
E)
no one.
2.
For FUTA purposes, an employer can be any one of the following except:
A)
an individual.
B)
a partnership.
C)
a trust.
D)
a corporation.
E)
All of these can be employers.
3.
Included under the definition of employees for FUTA purposes are:
A)
independent contractors.
B)
insurance agents paid solely on commission.
C)
student nurses.
D)
officers of a corporation.
E)
members of partnerships.
4.
Which of the following is not a factor considered in determining coverage of interstate employees?
A)
Location of base of operations
B)
Place where work is localized
C)
Location of company’s payroll department
D)
Location of employee’s residence
E)
Location of place from which operations are controlled
5.
An aspect of the interstate reciprocal arrangement concerns:
A)
the status of Americans working overseas.
B)
the taxability of dismissal payments.
C)
the determination of an employer’s experience rating.
D)
the transfer of an employee from one state to another during the year.
E)
none of these.
6.
Which of the following types of payments are not taxable wages for federal unemployment tax?
A)
Retirement pay
B)
Cash prizes and awards for doing outstanding work
C)
Dismissal pay
D)
Bonuses as remuneration for services
E)
Payment under a guaranteed annual wage plan
7.
Which of the following payments are taxable payments for federal unemployment tax?
A)
Christmas gifts, excluding noncash gifts of nominal value
B)
Caddy fees
C)
Courtesy discounts to employees and their families
D)
Workers’ compensation payments
E)
Value of meals and lodging furnished employees for the convenience of the employer
8.
If the employer is tardy in paying the state contributions, the credit against the federal tax is limited to what percent of the late payments that would have been allowed as a credit if the contributions had been paid on time?
A)
6.2
B)
90
C)
5.13
D)
20
E)
0
9.
Which of the following provides for a reduction in the employer’s state unemployment tax rate based on the employer’s experience with the risk of unemployment?
A)
Voluntary contribution
B)
Title XII advances
C)
Pooled-fund laws
D)
Experience-rating plan
E)
None of these
10.
Voluntary contributions to a state’s unemployment department are:
A)
allowed in all states.
B)
designed to increase an employer’s reserve account in order to lower the employer’s contribution rate.
C)
capable of being paid at any time with no time limit.
D)
returned to the employer at the end of the following year.
E)
sent directly to the IRS.
11.
If the employer has made timely deposits that pay the FUTA tax liability in full, the filing of Form 940 can be delayed until:
A)
December 31.
B)
February 15.
C)
February 10.
D)
February 1.
E)
March 31.
12.
The person who is not an authorized signer of Form 940 is:
A)
the individual, if a sole proprietorship.
B)
the accountant from the company’s independent auditing firm.
C)
the president, if a corporation.
D)
a fiduciary, if a trust.
E)
All of these are authorized signers.
13.
When making a deposit of FUTA taxes, the employer must make the deposit by the:
A)
end of the month after the quarter.
B)
15th of the month after the quarter.
C)
10th of the month after the quarter.
D)
same day of the FICA and FIT deposits.
14.
An employer must deposit the quarterly FUTA tax liability if the liability is more than:
A)
$3,000.
B)
$500.
C)
$1,000.
D)
$1.
E)
$100.
15.
In order to avoid a credit reduction for Title XII advances, a state must repay the loans by:
A)
the end of the year of the loans.
B)
the end of the year the credit reduction is scheduled to take effect.
C)
the end of the third year after the year of the loans.
D)
November 10 of the year the credit reduction is scheduled to take effect.
E)
June 30 of the year after the loans.
