CHAPTER 4 PRE TEST

CHAPTER 4 PRE TEST
Marvin Nash is married and claims 11 allowances. Nash earns $1,190 biweekly. What amount do you enter the wage bracket table to determine Nash's taxes?
a. $ 0.00

b. $146.15

c. $1190.00

d. $1,040.00

$1,190 - $150.00 = $1,040.00 Table of allowance values Pg 4-16/17.

Herman Muhlbradt is single, claims three allowances and earns $1,250 weekly. Compute Muhlbradt's tax using the percentage method.
a. $739.00

b. $95.95

c. $167.45

d. $75.00

Table $75.00 * 3 = $225.00: $1,250 – $225.00 = $1,025.00: Table $95.95 + ($1,025.00 - $739.00) * .25 = $167.45 Pg 4-15.

Herman Muhlbradt is single, claims three allowances and earns $1,250 weekly. Compute Muhlbradt's tax using the percentage method.
a. $739.00

b. $95.95

c. $167.45

d. $75.00

Information returns, Form 1099's:
a. report compensation paid to non-employees.

b. report Federal income taxes withheld during the quarter.

c. confirm that an employee is qualified under the HIRE act.

d. report pre-tax salary reductions.

If an employee has received over one million dollars in supplemental earnings for the year, any further supplemental earnings should be withheld
a. at a 39.6% withholding rate.

b. at a 35% withholding rate.

c. using the wage bracket method.

d. using the percentage method.

Under Federal Income Tax withholding laws, in order to withhold taxes, all of the following conditions must exist except:
a. an employer-employee relationship must exist.

b. payments must be defined as wages.

c. the employee must be over 21 years of age.

d. employment is not exempt.

Under Federal Income Tax withholding laws, in order to withhold taxes, all of the following conditions must exist except "the employee must be over 21 years of age." Pg 4-2.
All of the following are considered exempt from federal income taxes except:
a. employer provided parking.

b. moving expense reimbursement.

c. educational assistance.

d. vacations.

All of the above are considered exempt from federal income taxes except vacations. Pg 4-2/6. Brad Pilto is married, claims two allowances and earns $1,116.32 semimonthly. Compute Pilto's tax using the percentage method.
a. $346.00

b. $44.50

c. $79.10

d. $162.50

table $162.50 * 2 = $325.00: $1,116.00 - $325.00 = $791.00: Table ($791.00 - $346.00) * .10 = $44.50 Pg 4-15.
Naomi Hudson is married, claims two allowances and is paid $1,120 biweekly. Compute Hudson's tax using the wage bracket method.
a. $51.00

b. $49.00

c. $95.00

d. $92.00

Table $51.00 Pg 4-16.

Grainco is awarding a $5,000 year-end bonus to their employees. They intend for their employees to actually receive $5,000, and will gross-up the amount. What pre-tax amount will be paid so the Grainco's employees actually receive $5,000.
a. $6,672.18

b. $7,209.81

c. $8,000.00

d. $7,423.90

$5,000 / [1-.25 (supp w/h) -.062 (OASDI) -.0145 (HI)] = $7,423.90 Pg 4-20. ll of the following are considered taxable except:
a. reduced tuition for education.

b. gift certificates.

c. payments to non resident aliens.

d. meals and lodging for employee's benefit.

Arnold Epstein is married and claims one allowance. Epstein earns $750 weekly. Epstein earned a bonus of $2,500 and his employer withheld from the bonus at a 25% flat rate. Compute Epstein's withholdings for the week using the wage bracket table.
a. $61.00

b. $625.00

c. $686.00

d. $812.50

$61 (wage bracket table) + .25 * $2,500 = $686 Pg 4-19/20.
All of the following are considered taxable payments to employees except:
a. services.

b. goods.

c. clothing.

d. meals served to employees on the job.

The form used by the employee to claim withholding allowances is the Form:
a. W-2

b. W-3

c. W-4

d. WD-40

An employer-employee relationship exists
a. if the worker is a partner in a partnership.

b. if the worker is a director who attends board meetings.

c. if the worker is a child working for their parents.

d. if a business has the right to control and direct the worker.

Which of the following are considered taxable and subject to withholding?
a. Public official fees

b. Membership in a country club

c. Workers compensation payments

d. Educational assistance