MDC chapter 11

4879 Words Dec 27th, 2014 20 Pages
True
If an employee does not complete a Form W-4, the employer must withhold tax as if the employee were single with no exemptions
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False
Employees with two or more jobs or with a spouse who also is employed must complete the
"Two-Earners/Multiple Jobs Worksheet" on Page 2 of Form W-4 to determine the number of withholding allowances
If a husband and wife both work, they must divide their withholding allowances equally on their
W-4 Forms.
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False
Qualified moving expenses reimbursed by an employer are not reported as part of the employee's gross income and are therefore not subject to withholding.
Reimbursements of moving expenses are always subject to withholding.
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True
The two most common methods of determining federal income
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False
For 2013, all self-employment income is subject to the Medicare portion of the FICA tax. There is no maximum base amount when calculating the Medicare portion of the tax.
For 2013, the maximum base amount for computing the Medicare portion of the self-employment tax is $135,000.
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False
If an individual has self-employment income, then his maximum base amount subject to self-employment taxes is reduced by any wages which are subject to FICA taxes.
In determining an employee's FICA tax to be withheld, the maximum amount of wages subject to FICA must be reduced by the taxpayer's self-employment earnings
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False
Employers are generally required to pay the FUTA tax
The FUTA tax is a voluntary unemployment tax which an employer may or may not wish to contribute towards.
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True
A credit against the FUTA tax is available for state unemployment tax paid by the employer.
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False
For 2013, the FUTA tax is based on 6.0 percent (less a 5.4 percent credit if the state also assesses an unemployment tax) of employees' wages up to $7,000.
The FUTA tax for 2013 is based on 6.2 percent of each employee's wages up to $10,000.
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True
Household employers are not required to pay FICA taxes on cash payments of less than $1,800 paid to any household employee in a calendar year.
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False
If a taxpayer pays a household employee more than $1,800, then the taxpayer is required to pay FICA taxes
Household employers are not required to pay FICA taxes on part-time household

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