If an employee does not complete a Form W-4, the employer must withhold tax as if the employee were single with no exemptions
true
If a husband and wife both work, they must divide their withholding allowances equally on their W-4 Forms.
False
In 2009, the maximum amount of wages subject to the Social Security portion of the FICA tax is $106,800.
True
If an individual taxpayer discovers that his or her original estimate for estimated tax payments was inaccurate, the taxpayer should continue to make payments based on the original estimate and pay any additional amount or request any refund when the tax return is filed.
False
Individual quarterly estimated tax payments are filed with Form 1040-ES
True
For 2009, the Social Security portion of the FICA tax is imposed at a rate of:
a. 6.2% for the employee and 7.65% for the employer
b. 6.2% for only the employer
c. 6.2% for only the employee
d. 6.2% for the employee and 6.2% for the employer
6.2% for the employee and 6.2% for the employer
The Pear Corporation pays its employees every 2 weeks. During the look-back period, in each pay period the total withholding and FICA tax (employees' and employer's share) amounted to $750. How often must the Pear Corporation deposit payroll taxes?
a. Annually
b. Monthly
c. Quarterly
d. Daily
monthly
Which of the following forms should be used by a company to report a payment of $1,500 to a computer consultant who is not an employee of the company?
a. Form 1099-INT
b. Form W-4
c. Form W-2
d. Form 1099-DIV
e. Form 1099-MISC
Form 1099-MISC
Payors are not required to use backup withholding if:
a. The taxpayer did not give the payor his or her taxpayer identification number
b. The taxpayer certifies that he or she is not subject to backup withholding
c. The IRS informs the payor that the taxpayer gave an incorrect identification number
d. The IRS informs the payor to start withholding because the taxpayer has not reported the income on his or her tax return
The taxpayer certifies that he or she is not subject to backup withholding
Mark the correct answer. Self-employment taxes:
a. Consist of a Medicare tax and a Social Security tax
b. Are not affected by wages the taxpayer earns as an employee
c. Apply to taxpayers with less than $400 in self-employment earnings
d. Are calculated based on unearned income such as interest and dividends as well as net earnings from self-employment
Consist of a Medicare tax and a Social Security tax
The FUTA tax for 2009 is based on 6.2 percent of each employee's wages up to $10,000
False
A credit against the FUTA tax is available for state unemployment tax paid by the employer
True
Employer deposits of withheld taxes may be made to any commercial bank
False
Oliver has two employees who earned the following amounts during 2009: June $17,000 Eric 5,000 If Oliver timely pays 5.4% for state unemployment tax, what is the amount of his 2009 FUTA after the state tax credit?
a. $0
b. $96
c. $112
d. $176
$96
In 2009, Willow Corporation had three employees. Two of the employees worked full-time and earned salaries of $25,000 each. The third employee worked only part-time and earned $3,000. The employer timely paid state unemployment tax equal to 5.4% of each employee's wages up to $7,000. How much FUTA tax is due from Willow Corporation for 2009, after the credit for state unemployment taxes?
a. $0
b. $136
c. $168
d. $918
$136
The FUTA tax is paid by:
a. Employees only
b. Employers only
c. Employers and employees
d. Neither employers nor employees
e. The federal government
Employers only
An employer withholds $150,000 of federal taxes in a partial weekly period. Payment must be made:
a. 10 banking days after the end of the month.
b. 3 banking days after the end of the partial weekly period.
c. 3 banking days after they accumulate $100,000.
d. 1 banking day after they accumulate $100,000
1 banking day after they accumulate $100,000
Employers are subject to a deposit penalty if they pay federal withholding taxes:
a. with Form 941.
b. after the due date.
c. timely and properly.
d. by EFTPS (electronically)
after the due date
Which employers are subject to FUTA?
a. Farmers who paid wages of $1,500 or more in a calendar quarter.
b. Only employers who have fired or laid off employees.
c. Employers that have only family members.
d. General businesses that paid wages of $1,500 or more in a calendar quarter
General businesses that paid wages of $1,500 or more in a calendar quarter
As the number of withholding allowances increases on Form W-4:
a. the year end tax liability increases.
b. does not affect year end liability.
c. FICA taxes decreases.
d. the year end tax liability decreases
does not affect year end liability
Unless the taxpayer has filed an extension, the Ohio Individual Income Tax Return is due on what date for most taxpayers?
a. January 31
b. April 15.
c. April 30.
d. December 31
April 15
If the taxpayer has filed an extension and calculates an Ohio income tax liability, when must the liability be paid to avoid penalty?
a. With the extension.
b. By June 30.
c. With the tax return.
d. By the end of the year of filing
With the extension.
How would a married couple who filed jointly on their federal return file on their Ohio income tax return?
a. Any method that produces the lowest liability.
b. May file separately to take advantage of more credits.
c. May file separately if lived apart more than six months during the year
d. Must file jointly on the Ohio income tax return
Must file jointly on the Ohio income tax return
The Ohio joint filing credit can be used by taxpayers who
a. File an Ohio tax return jointly and both have earned income greater than $500.
b. File an Ohio tax return separately and both have earned income greater than $500.
c. File an Ohio tax return jointly and only one spouse has earned income greater than $500.
d. Have dependent children living with them more than six months
File an Ohio tax return jointly and both have earned income greater than $500.
An advantage that taxpayers receiving pension benefits is:
a. The pension income is excluded from Ohio taxable income.
b. The pension income can produce a tax credit of the full amount of federal taxes withheld on the Ohio income tax return.
c. The pension income can produce a tax credit of up to $200 on the Ohio income tax return.
d. The pension income provides no advantages for Ohio taxpayers.
The pension income can produce a tax credit of up to $200 on the Ohio income tax return.
Which of the following statements are not true?
a. Every Ohio resident and part-year resident is subject to the Ohio income tax.
b. Income earned in Ohio is not taxable if the taxpayer is not a resident of Ohio.
c. Single persons age 65 or old with federal adjusted gross income less than $11,500 and no Schedule A adjustments do not have to file an Ohio income tax return.
d. Retirement, pension and annuity income are all taxable for Ohio residents, even if the employment triggering the income occurred in another state
Income earned in Ohio is not taxable if the taxpayer is not a resident of Ohio.
If the IRS examined and changed a taxpayer's federal income tax return:
a. An amended Ohio return must be filed.
b. No action is required since this would not affect the state income tax return.
c. Adjustments will need to be made on the following year's Ohio return to recapture the additional tax.
d. No action is required if the examination by the IRS only resulted in a change in the filing status or number of exemptions.
An amended Ohio return must be filed.
What are the rates that may be applied to Ohio income taxes that are not paid in full on time for 2008?
a. 5% interest plus up to 35% late payment penalty.
b. 5% interest plus up to $500 late payment penalty
c. 8% interest plus up to 35% late payment penalty.
d. 8% interest plus up to $500 late payment penalty.
8% interest plus up to 35% late payment penalty.
Which of the following would not be a Schedule A adjustment?
a. Municipal bond interest received.
b. Federal additional first year depreciation.
c. Tax withheld by and for wages earned in another state.
d. Local income tax refunds.
Tax withheld by and for wages earned in another state
What method may be used to pay Ohio income tax liabilities?
a. Check
b. Money Order
c. Credit Card
d. All of the above
All of the above
Who administers School District Income Tax?
a. Ohio Department of Taxation.
b. City in which the school is located.
c. Board of Education.
d. School District Administrative offices
Ohio Department of Taxation.
Who is subject to School District income tax withholdings?
a. Taxpayer who works, but does not reside, in the boundaries of the school district.
b. Taxpayer who resides in the boundaries of the school district.
c. Only taxpayers who have children attending school in that district.
d. Everyone is subject to School District income tax, no matter what district he/she resides
Taxpayer who resides in the boundaries of the school district
Which of the following is the only tax credit that is found on the school district income tax return unrelated to income or payments?
a. Senior citizen credit
b. Tuition credit
c. The joint filing credit
d. Property tax credit
Senior citizen credit
A taxpayer resides in Etna township (a non-taxing municipality), works in Columbus, has a Reynoldsburg address, lives in the boundaries of Pickerington school district, and sends her son to private school. To which school district (if any) should she file Form SD-100?
a. Reynoldsburg
b. Pickerington
c. Both Reynoldsburg and Pickerington
d. She is not required to file a school district income tax return.
Pickerington
Part-year residents of two different school districts must file Form SD-100:
a. Only with the first district in which he/she resided.
b. Only the school district lived in on the last day of the year.
c. Both school districts, taking credits on each return for time lived in the other district.
d. Neither school district since Form SD-100 does not recognize part-year residency.
Both school districts, taking credits on each return for time lived in the other district
All employers must remit School District income tax withholdings:
a. Weekly, if payroll occurs every week.
b. Monthly, if state income tax withholdings are submitted monthly.
c. Quarterly, if state income tax withholdings are submitted monthly.
d. Annually, if state income tax withholdings are submitted quarterly.
Monthly, if state income tax withholdings are submitted monthly
If your employer withheld school district taxes for a different school district than that of which you actually reside in, what should you do?
a. Nothing, the state tax department will figure it out and credit your account.
b. You do not need to file a Form SD-100 if you were fully withheld for any school district.
c. File a Form SD-100 for the correct district, you will automatically be credited for withholdings from the other district.
d. File a Form SD-100 for the correct district, pay the total tax due, and request a refund for that paid to the other district.
File a Form SD-100 for the correct district, pay the total tax due, and request a refund for that paid to the other district
Who is potentially subject to School District income tax?
a. Individuals.
b. Children under 18.
c. Estates.
d. All of the above may be subject to School District income tax.
All of the above may be subject to School District income tax.
The due dates for individuals required to make estimated payments are:
a. 3/31, 6/30, 9/30 and 12/31
b. 4/15, 6/15, 9/15 and 12/15
c. 4//15, 6/15, 9/15 and 1/15
d. 4/30, 7/31, 10/31 and 1/15
4//15, 6/15, 9/15 and 1/15
If a taxpayer resides in an "Earned Income Only" Tax Base School District, then which of the following type of income would be subject to school district income tax?
a. Tips.
b. Dividends.
c. Interest
d. Alimony.
Tips
Under no circumstances would a resident of City A have to file a city income tax return for City B.
False
An individual who earns a salary in one city and operates a business in another would only need to file a municipal income tax return in his/her city of residence
False
Which of the following types of income would be subject to municipal income tax?
a. Military Pay
b. Interest income
c. Distributive share of income earned from an S corporation
d. Distributive share of capital gains from an S corporation
Distributive share of income earned from an S corporation
Voter approval is required for any municipal rate exceeding:
a. 1 percent
b. 1.5 percent
c. 3 percent
d. Voter approval is required for any municipality to levy income tax
1 percent
Net profits from rental activities are generally subject to municipal income tax
True
If an individual is fully withheld in the workplace city, a residence city income tax return would not be required
False
If a taxpayer and his spouse file married filing joint on their federal and state income tax returns, the couple:
a. Must file on a joint basis for municipal income tax.
b. May file separately, reporting each of the their own income, on their municipal returns.
c. Must file separately, reporting each of the their own income, on their municipal returns if they worked in different cities.
d. Must amend their state income tax return to married filing separately if they wish to do so on the municipal income tax return
May file separately, reporting each of the their own income, on their municipal returns.
If a taxpayer lives in City A and works in City B, the municipal tax liability would be incurred as follows:
a. City A would be the only tax liability.
b. City B would be the only tax liability.
c. City A tax would take priority, then City B tax would be due.
d. City B tax would take priority, then City A tax would be due.
City B tax would take priority, then City A tax would be due
A large number of municipalities allow their residents who work in another city to:
a. Exclude the income earned in the other city from the residence city return.
b. Exclude business income from the residence city return if a return was filed in the other city.
c. Take a tax credit against the residence city tax liability for taxes paid to the other city.
d. Take a tax credit against the residence city tax liability for the number of days worked to earn income in the other city.
Take a tax credit against the residence city tax liability for taxes paid to the other city.
How does a taxpayer figure out the municipality in which he resides in determining the residence city for income tax purposes?
a.The taxpayer's city of address
b.Department of Taxation's "Finder"
c.The utility company grids
d.The taxpayer's municipality and school district will be the same
