CPB / BookKeeping Payroll and Tax Reporting Questions and Answers

Question 1

A business client has failed to deposit their payroll taxes for a pay period.
The total amount due was $10,000.
They paid the full amount 12 calendar days after the due date.
According to IRS penalty rates, what would be the failure-to-deposit penalty?

Accepted Answer

5% of the unpaid deposit

Answer

2% of the unpaid deposit

Answer

10% of the unpaid deposit

Answer

15% of the unpaid deposit

Question 2

Which of the following is the correct due date for an employer to file Form 941, Employer's QUARTERLY Federal Tax Return, for the second quarter (April 1 - June 30)?

Accepted Answer

July 31

Answer

June 30

Answer

July 15

Answer

August 31

Question 3

An employer is calculating their Federal Unemployment Tax Act (FUTA) liability. The FUTA tax rate is 6.0% on the first $7,000 of wages paid to each employee. If the employer is in a state with a certified unemployment program and has made all state unemployment tax payments on time, what is the maximum credit they can receive against their FUTA tax, and what is the effective FUTA tax rate?

Accepted Answer

A 5.4% credit, resulting in a 0.6% effective rate.

Answer

A 6.0% credit, resulting in a 0% effective rate.

Answer

A 0.6% credit, resulting in a 5.4% effective rate.

Answer

The credit varies by state and cannot be determined from the information given.

Question 4

A small construction company hires a specialized welder for a single, two-week project. The company provides the welding equipment and materials, specifies the exact hours the welder must work on-site, and dictates the sequence of the welding tasks. For payroll tax purposes, how should this welder most likely be classified?

Accepted Answer

Common-Law Employee

Answer

Statutory Employee

Answer

Independent Contractor

Answer

Statutory Nonemployee

Question 5

What is the annual deadline for employers to furnish Form W-2, Wage and Tax Statement, to their employees and file Copy A with the Social Security Administration (SSA)?

Accepted Answer

January 31

Answer

February 28

Answer

April 15

Answer

March 31

Question 6

Which of the following forms is used by employers to transmit Forms W-2, Wage and Tax Statements, to the Social Security Administration when filing by mail?

Accepted Answer

Form W-3

Answer

Form 940

Answer

Form 941

Answer

Form W-4

A business client has failed to deposit their payroll taxes for a pay period.The total amount due was $10,000.They paid the full amount 12 calendar days after the due date.According to IRS penalty rates, what would be the failure-to-deposit penalty?

A business client has failed to deposit their payroll taxes for a pay period.
The total amount due was $10,000.
They paid the full amount 12 calendar days after the due date.
According to IRS penalty rates, what would be the failure-to-deposit penalty?