APA Taxation and Compliance 3

Question 1

An employer pays $400 in moving expense reimbursements to an employee. Under current tax law (post-TCJA), how is this treated?

Accepted Answer

Fully taxable as wages

Answer

Excluded from income if the move meets distance and time tests

Answer

Excluded up to $5,000

Answer

Subject only to Medicare tax

Question 2

What is the employer's deadline to furnish Form W-2 to employees each year?

Accepted Answer

January 31

Answer

January 15

Answer

February 15

Answer

February 28

Question 3

Which box on Form W-2 reports Social Security wages subject to Social Security tax?

Accepted Answer

Box 3

Answer

Box 1

Answer

Box 5

Answer

Box 16

Question 4

An employee receives a $2 million bonus. What withholding rate applies to the amount exceeding $1 million?

Accepted Answer

37%

Answer

22%

Answer

24%

Answer

39.6%

Question 5

Under the IRC Section 132, which fringe benefit allows an employer to exclude from income the cost of job-related education up to $5,250 annually?

Accepted Answer

Educational assistance program

Answer

Working condition fringe benefit

Answer

No-additional-cost service

Answer

De minimis fringe benefit

Question 6

When must an employer deposit federal payroll taxes if it is a monthly depositor and the payroll is run on October 15?

Accepted Answer

November 15

Answer

October 15

Answer

October 22

Answer

October 31

Question 7

Which IRS notice requires an employer to begin withholding child support from an employee's wages?

Accepted Answer

Income Withholding for Support (IWO)

Answer

Form W-4

Answer

National Medical Support Notice

Answer

Form 668-W