Reference no: EM13482335

Q1. All of the following are properly definedas wages subject to the withholding of federal incometaxes except _______.

• year-endbonus
• kitchen appliances givenby manufacturer in lieu of cash wages
• dismissalpayment
• vacation pay
• payments made underworker's compensation law

Q2. Which of the following non cash fringe benefits does not represent taxable income subject to federalincome tax withholding?

• flight onemployer-provided airline
• personal use of companycar
• sick pay
• employer-paid membershipto a country club
• All of the above are taxable.

Q3. A personal allowance ________.

• amounted to $2,000in 2008
• may be claimed to exempta portion of their earnings from withholding
• is indexed for inflationevery calendar quarter
• may be claimed at thesame time with each employer for whom an employee isworking during the year
• may not be claimed bynonresident aliens from Argentina

Q4. To curb the practice of employees filingfalse Forms W-4, the IRS requires that an employer submit to theagency a copy of each Form W-4 ________.

• the IRS has requested inwriting
• on which an employee,usually earning $180 each week at the time Form W-4 was filed, nowclaims to be exempt from withholding
• on which an employeeclaims to be single but has 9 withholding allowances
• on which a marriedemployee claims no withholding allowances
• on which a recentlydivorced employee claims 5 withholding allowances and authorizes anadditional $10 to be withheld each week

Q5. A company must withhold federal incometaxes from payments made to independent contractors in which of the following cases?
when there is a signedcontract between the parties

• when the contractor ispaid more than $10,000
• when the contractor is acorporation
• when the contractor hasnot provided a taxpayer identification number and the contract is$600 or more
• all of the above