Question 11: Which statement regarding the calculation of taxes is accurate?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter4: Gross Income
Section: Chapter Questions
Problem 7RP
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Transcribed Image Text:Question 11: Which statement regarding the calculation of taxes is accurate?
Answer:
A.
O For simplicity, taxable income for local, state, and federal income tax withholdings has been standardized.
B.
O All taxes are calculated based on net pay.
C.
O Because retirement plans are exempt from federal income tax, you add the contributed amount before calculating the employee's federal withholding.
D. O Taxes may be calculated based on an amount lower than gross pay, and not all taxes are calculated based on the same amount.
Question 12: Which of these is a credit reduction state/territory?
Question 15: Union dues are considered a
deduction.
Answer:
Answer:
A.
A.
O Connecticut
O cafeteria
B.
O Ohio
B.
O insurance
C.
O Virginia
C.
O mandatory
D.
O U.S. Virgin Islands
D.
O voluntary
Question 14: Alejandra owns and operates an appliance store where employees clock in and out for each shift. Per the FLSA, Alejandra rounds employee time
worked to the nearest 15-minute increment. On Tuesday this week, Stanley works 4 hours and minutes in the morning and 3 hours and 11 minutes in the
afternoon. How does Alejandra record Stanley's time?
Answer:
A.
O 7 hours
B.
O 7 hours and 15 minutes
C.
O 7 hours and 20 minutes
D.
O 7 hours and 30 minutes
Question 13: Match each form relating to independent contractors to its intended purpose.
Form 1099-NEC
Used request a Taxpayer Identification Number
DROP HERE
Form W-9
Displays total compensation for one independent
contractor
DROP HERE
Form 1096
Totals all compensation paid to independent contractors
DROP HERE
Form SS-8
Used by the IRS to determine a worker's employment
classification
DROP HERE
Question 16: Most columns on the left side of the employee earnings record relate to employee earnings, while columns on the right relate to
Answer:
A.
O allowances
B.
O deductions
C.
O regular hours worked
D.
O overtime hours worked
Question 17: Match each additional Medicare tax earnings threshold to the filing status.
Married filing jointly
$125,000
DROP HERE
$200,000
Single/head of household/qualifying widower
DROP HERE
Married filing separately
$250,000
DROP HERE
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