2010Ps Payroll Source Ch06

Front 1

9. (T/F question)
Before receiving advance EIC payments, an employee must file Form W-5 with his or her employer.

Back 1

9. (T/F)
True

Front 2

10. (T/F question)
Advance EIC payments are not wages and do not change the amount of federal income, social security, and Medicare taxes that must be withheld from the employee's wages.

Back 2

10. (T/F)
True

Front 3

11. (T/F question)
An employee's social security number is needed even if there is no withholding.

Back 3

11. (T/F)
True

Front 4

12. (T/F question)
If a new employee does not provide a Form W-4, the employer must withhold as if the employee were single with no allowance.

Back 4

12. (T/F)
True

Front 5

9. (Multiple Choice Q)
Which of the following states allows employers to use the federal Form W-4 to calculate state income tax withholding?

a. Arizona
b. California
c. Michigan
d. North Carolina

Back 5

9. (Multiple Choice)
b. California

Front 6

10. (Multiple Choice Q)
An employee claims single and one withholding allowance and is paid $550 every Friday in 2010. Using the wage-bracket tables, how much federal income tax must be withheld?

a. $23
b. $51
c. $53
d. $41

Back 6

10. (Multiple Choice)
b. $51

Front 7

11. ((Multiple Choice Q)
What must an employer do after learning that a Form W-4 submitted by a current employee is invalid?

a. Not implement the Form W-4
b. Withhold as if the employee were single with zero allowances
c. Inform theIRS
d. Make the necessary corrections

Back 7

11. (Multiple Choice)
a. Not implement the Form W-4

Front 8

12. (Multiple Choice Q)
A newly hired employee who is married with two children fails to complete Form W-4 by his first payday. What withholding status does the employer use when calculating the employee's withholding?

a. Married, with 2 allowances
b. Married, with 3 allowances
c. Single, with 2 allowances
d. Single, with 0 allowances

Back 8

12. (Multiple Choice)
d. Single, with 0 allowances