Betty's Section 8 Quiz Flashcards
- The determination of depositor status is based on the employer’s total liability for federal income, social security, and Medicare taxes during a “lookback period”. The lookback period is:
c) the 12-month period running from July 1 of the second previous year through June 30 of the previous year
- Which of the following “non-payroll” items need to be reported on Form 945, Annual Return of Withheld Federal Income Tax:
a) reportable payments subject to backup withholding
b) gambling winnings
c) pensions and annuities
d) all of the above
d) all of the above
- To be a monthly depositor the employer’s total liability for federal income, social security, and Medicare taxes during the look back period must be:
c) $50,000 or less
- Monthly depositors must deposit their accumulated tax liability for each calendar month by:
c) the 15th of the following month
- Semiweekly depositors must deposit taxes according to which of the following schedules:
b) employment taxes for wages paid Saturday, Sunday, Monday, and Tuesday by the following Friday, and employment taxes for wages paid Wednesday, Thursday, and Friday by the following Wednesday
- The penalty for failure to deposit tax more than 15 days after the due date is:
a) 5% of the undeposited amount
b) 10% of the undeposited amount
c) 15% of the undeposited amount
d) 25% of the undeposited amount
b) 10% of the undeposited amount
- Form 944 is filed by certain employers:
a) employers with less than $10000 annual federal tax liability, and is paid annually
b) employers with less than $1000 annual federal tax liability and is paid quarterly
c) employers with less than $2000 annual federal liability and is paid annually
d) employers with less than $1000 annual federal tax liability and paid annually
employers with less than $1000 annual federal tax liability and paid annually
- In general, employers must file Form 941 by the last day of the first month following the end of each calendar quarter. However, if the employer has made timely deposits of all its payroll tax liability for the quarter, the filing period is automatically extended to:
a) the 5th day of the next month
b) the 10th day of the next month
c) the 15th day of the next month
d) the 20th day of the next month
the 10th day of the next month
- What is the penalty if an employer fails to provide an employee or other payee with a required information statement on time and/or with incorrect or incomplete information?
a) $10 per statement, up to a maximum of $100,000
b) $25 per statement, up to a maximum of $250,000
c) $50 per statement, up to a maximum of $565,000
d) $50 per statement, up to a maximum of $750,000
c) $50 per statement, up to a maximum of $565,000
- Employers must file W-2s electronically if they file:
a) 100 or more Forms W-2
b) More than 100 Forms W-2
c) 250 or more Forms W-2
d) More than 250 Forms W-2
250 or more Forms W-2
- Form SS-4 is used for
Applying for an Employer Identification Number
- If an employer does not obtain an EIN by the time a tax deposit is due, the employer should
A Make the payment using EFTPS
B File Form SS-4
C File Form 8109 with an authorized financial institution
D Accumulate the taxes for the quarter and pay with Form 941
Make the payment using EFTPS
- The depositor status classifications assigned to employers are:
Monthly or semiweekly
- For calendar year 2024, the look back period for determining depositor status (other than railroad or farm) is
July 1, 2022 to June 30, 2023
- If an employer’s look back period tax liability exceeds $50,000, the employer is a
Semiweekly depositor
- The deposit classification for new employers is
Monthly
- Monthly depositors must deposit their accumulated tax liability by
The 15th of the following month
- On Friday, August 2, ABC Inc. paid wages with an employment tax liability of $94,000, and on Monday, August 5, it paid bonuses with a tax liability of $25,000. When must ABC Inc. deposit the $94,000 liability?
A Monday, August 5
B Tuesday, August 6
C Wednesday, August 7
D Friday, August 9
Wednesday, August 7
- On Monday, August 12, Acme’s paid wages with an employment tax liability of $105,000. On Tuesday, August 13, Acme’s accumulates $42,000 in employment tax liability. When must the $42,000 obligation be deposited?
A Tuesday, August 13
B Wednesday, August 14
C Friday, August 16
D Monday, September 16
Because the larger amount was deposited Tuesday, only the remaining $42,000 is due
Friday, August 16
For the week, J-Mart accumulates employment taxes of $42,000 on Monday, August 12, and $105,000 on Tuesday, August 13. What is J-Mart’s total deposit obligation for Friday, August 16?
A 0
B $42,000
C $105,000
D $147,000
Because the smaller amount is added to the larger amount and deposited Wednesday.
0, it has to be deposited the next day over $100k so not friday, it would be wednesday
- If a monthly depositor accumulates at least $100,000 in tax liability on any day during a month
A It must deposit the liability by the 15th of the following month
B It must deposit the liability by the last business day of that month
C There is no change because the classification based on its look back period lasts for an entire calendar year
D It becomes a semiweekly depositor for the remainder of the year
It becomes a semiweekly depositor for the remainder of the year
Haybridge, a semiweekly depositor, pays wages on Monday, September 30, with an employment tax liability of $95,000. Quarterly bonuses are then paid on Tuesday, October 1, and an employment tax liability of $6,000 is incurred. What is Haybridge’s deposit obligation?
A $101,000 must be deposited by Wednesday, October 2
B $95,000 must be deposited by Tuesday, October 1, and $6,000 by Wednesday, October 2
C $95,000 must be deposited by Wednesday, October 2, and $6,000 by Friday, October 4
D $95,000 and $6,000 must be deposited separately by Friday, October 4
D $95,000 and $6,000 must be deposited separately by Friday, October 4
On Tuesday, September 28 J. C. Nickel’s a semi-weekly depositor pays wages with an employment tax liability of $60,000. On Friday, October 1, Nickel’s deposits $58,800, leaving a lawful shortfall of $1,200 (60,000 x 2%). When must Nickel’s deposit the shortfall?
A Monday, November 1
B Friday, October 1
C Wednesday, October 13
D Friday, November 20
Monday, November 1 - Due date of the 3rd qtr 941
Employers with a total employment tax liability of less than $2,500 in a quarter and monthly depositors paying a lawful deposit shortfall under the safe-harbor rules
A Can pay their taxes with their Form 941 B Can use paper checks and deposit coupons if depositing less than $200,000 in payroll taxes in a year C Can pay their taxes through the Electronic Federal Tax Payment System D All of the above
All of the above
- Employers that are required to deposit electronically
Must enroll in the Electronic Federal Tax Payment System
Who originates an ACH credit transaction to EFTPS?
The employer’s financial institution
Under ACH rules, if an error has been made, how long does the employer initiating a payment have to reverse that payment?
A By the tax due date
B 3 banking days
C 5 banking days
D ACH credit entries cannot be reversed
5 banking days
An employer who makes an incorrect EFTPS has to get a refund from IRS on Form:
A 941
B 941c
C 941X
D 940
941X
- If an employer has made timely deposits of all its payroll tax liability for the quarter, the due date for filing Form 941 for the quarter April – June is
A July 15
B July 31
C August 10
D August 15
August 10
Undeliverable Forms W-2 must be kept by the employer
A Indefinitely
B Until April 15 following the tax year
C 1 year
D 4 years
4 years
- If an employee terminates involuntarily before the end of a calendar year and asks for a Form W-2
A The employer can wait until the next January 31 to send it
B The employer must send it within 30 days of the employee’s written request
C The employer must send it within 30 days of issuing the employee’s final payment of wages
D Either B or C whichever is later
Either B or C whichever is later
A Form W-3c transmittal is not required
A If submitting only one Form W-2c
B If correcting only employees’ names and/or SSNs
C If correcting an employee’s address
D All of the above
If correcting an employee’s address
Information returns filed after the due date or with incorrect information without reasonable cause may be assessed a penalty of
A $130 per return if not corrected by August 1
B $60 per return if corrected within 30 days after the due date
C 0.5% for each month the return is late, up to a maximum of 25%
D Either A or B
D Either A or B
