CA Payroll Processing & Administration 3

Question 1

An employer deposits payroll taxes using the monthly deposit schedule. For March wages paid on March 31, by what date must the deposit be made?

Accepted Answer

April 15

Answer

Monthly depositors must deposit taxes accumulated during each calendar month by the 15th of the following month.

Question 2

Which of the following is a correct statement about the Additional Medicare Tax under the ACA?

Accepted Answer

The 0.9% surtax applies to wages exceeding $200,000 for single filers

Answer

Employers must withhold the 0.9% Additional Medicare Tax on wages over $200,000 paid to an employee in a calendar year; there is no employer match.

Question 3

A salaried exempt employee is absent for three full days due to personal reasons and the employer docks pay. What is the FLSA implication?

Accepted Answer

Impermissible; docking destroys the salary basis and may eliminate exemption

Answer

Docking an exempt employee's pay for partial-week personal absences violates the salary basis test and can destroy the FLSA exemption.

Question 4

What is the purpose of the IRS Publication 15 (Circular E)?

Accepted Answer

To provide employers with federal income tax withholding tables and payroll tax guidance

Answer

IRS Publication 15 (Employer's Tax Guide) provides withholding tables and instructions for calculating federal payroll taxes.

Question 5

Under IRC Section 125, a cafeteria plan allows employees to pay for qualified benefits with pre-tax dollars. Which of the following is NOT a qualified benefit under a Section 125 plan?

Accepted Answer

Vacation pay cash-out

Answer

Vacation pay cash-outs are not a qualified benefit under Section 125 and cannot be paid with pre-tax dollars through a cafeteria plan.

(CA) Chartered Certified Accountant Practice Test

(CA) Chartered Certified Accountant Practice Test

CA Payroll Processing & Administration 3