CPP CPP Payroll Accounting & Reporting 2 — Questions and Answers
Question 1: The deadline for furnishing W-2 forms to employees is:
- December 31 of the tax year
- January 31 of the following year (Correct answer)
- February 15 of the following year
- March 1 of the following year
Correct answer: January 31 of the following year
Employers must furnish W-2 forms to employees by January 31 of the year following the tax year.
Question 2: Employer-sponsored health coverage costs are reported on Form W-2 in:
- Box 1, as taxable wages
- Box 14, as other compensation
- Box 12, using Code DD (Correct answer)
- Box 16, as state wages
Correct answer: Box 12, using Code DD
The cost of employer-sponsored health coverage is reported in Box 12 of Form W-2 using Code DD for informational purposes only.
Question 3: Form W-2c is used to:
- Request a replacement SSN from the SSA
- Correct errors on a previously issued W-2 (Correct answer)
- Report additional compensation omitted from the original W-2
- Extend the W-2 furnishing deadline
Correct answer: Correct errors on a previously issued W-2
Form W-2c (Corrected Wage and Tax Statement) corrects errors on a previously issued W-2 and is filed with Form W-3c.
Question 4: Form 941 is filed on what schedule?
- Annually by January 31
- Monthly by the 15th of the following month
- Quarterly — due April 30, July 31, October 31, and January 31 (Correct answer)
- Semi-annually in July and January
Correct answer: Quarterly — due April 30, July 31, October 31, and January 31
Employers file Form 941 quarterly, with due dates of April 30, July 31, October 31, and January 31.
Question 5: Which box on Form W-2 reports Medicare wages and tips?
- Box 1
- Box 3
- Box 5 (Correct answer)
- Box 16
Correct answer: Box 5
Box 5 reports Medicare wages and tips; unlike Social Security, Medicare has no wage base cap so this amount may exceed Box 3.
Question 6: The annual federal unemployment tax return is filed on:
- Form 944
- Form 941
- Form W-3
- Form 940 (Correct answer)
Correct answer: Form 940
Form 940 is the Employer's Annual Federal Unemployment (FUTA) Tax Return, due January 31 of the following year.
CPP CPP Payroll Accounting & Reporting 2
The deadline for furnishing W-2 forms to employees is: