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1 | |
Examples of taxable wages for federal income tax withholding purposes are: |
| | A) | Wages and salaries |
| | B) | Vacations pay |
| | C) | Tips |
| | D) | All of the above |
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2 | |
A pre-tax deduction is : |
| | A) | A bonus |
| | B) | A stock distribution |
| | C) | A deduction that is subtracted from gross earning prior to computing the federal income tax |
| | D) | Overtime pay |
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3 | |
Raul works for IDD, Inc. he is single and claims 0 allowances. His weekly salary is $1100. Using the Wage bracket tables the withholding amount for federal income tax is: |
| | A) | $185 |
| | B) | $203 |
| | C) | $200 |
| | D) | $188 |
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4 | |
Katia works for Development Solutions, Inc.; she is single and claims 0 allowances. Her weekly salary is $1100. Using the percentage method, the withholding amount for federal income tax is: |
| | A) | $184.50 |
| | B) | $201.35 |
| | C) | $200.00 |
| | D) | $188.00 |
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5 | |
For 2005, any taxable wages in excess of: |
| | A) | $87,000, is considered exempt. |
| | B) | $86,900, is considered exempt. |
| | C) | $90,000, is considered exempt. |
| | D) | $87,900, is considered exempt. |
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6 | |
During 2005, Sandra Linn was paid on a semimonthly salary of $5,000.00. Compute the amount OASDI that should be withheld form her on her on her 24th paycheck. |
| | A) | $310.00 |
| | B) | $382.50 |
| | C) | $0 |
| | D) | $682.50 |
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7 | |
During 2005, Sandra Linn was paid on a semimonthly salary of $5,000.00. Compute the HI (Medicare) withholding amount on her on her 24th paycheck. |
| | A) | $72.50 |
| | B) | 382.50 |
| | C) | $0 |
| | D) | $682.50 |
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8 | |
The employer must pay or match the employee’s contribution to OASDI and HI. |
| | A) | True |
| | B) | False |
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9 | |
The process of issuing a court order to authorize an employer to make deductions to the employee wages is called: |
| | A) | Pre-tax deductions |
| | B) | Cafeteria 125 deductions |
| | C) | Garnishments |
| | D) | Bonus |
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10 | |
Unemployment insurance is : |
| | A) | A vacation program. |
| | B) | A federal program that provides benefits during periods of temporary unemployment. ( FUTA) |
| | C) | A state program that provides benefits during periods of temporary unemployment. (SUTA) |
| | D) | Both B and C |
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11 | |
A “checkoff” is: |
| | A) | Tips received |
| | B) | A pre-tax deduction |
| | C) | A withholding of union dues from the employee earnings |
| | D) | None of the above |
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12 | |
A ROTH IRA contribution is treated as a pre-tax deduction. |
| | A) | True |
| | B) | False |
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