Fundamental Payroll Employment Taxes and Withholding Flashcards
7 cards from real Fundamental Payroll Certification practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Fundamental Payroll Employment Taxes and Withholding flashcards as text
An employee claims 'Exempt' on their W-4. What does this mean for federal income tax withholding?
Answer: No federal income tax is withheld from their wages
An exempt claim on a W-4 means the employer should not withhold any federal income tax from the employee's wages.
Which IRS form is used by employers to report federal income tax withheld and FICA taxes on a quarterly basis?
Answer: Form 941
Form 941, the Employer's Quarterly Federal Tax Return, is used to report federal income tax withheld and FICA taxes each quarter.
The Additional Medicare Tax of 0.9% applies to wages exceeding what threshold for a single filer?
Answer: $200,000
Employers must withhold the 0.9% Additional Medicare Tax on wages paid to an employee exceeding $200,000 in a calendar year, regardless of filing status.
Which deposit schedule applies to a new employer with no lookback period history?
Answer: Monthly depositor
New employers with no lookback period history are automatically classified as monthly depositors.
An employee's wages are $1,500 for the pay period. Using the percentage method, which IRS table does the employer consult to determine withholding under the 2020+ W-4?
Answer: Publication 15-T Percentage Method Tables for Automated Payroll Systems
Publication 15-T contains the Percentage Method Tables for Automated Payroll Systems used to calculate federal income tax withholding.
What is the employer's share of the Social Security tax rate?
Answer: 6.2%
The employer's share of Social Security tax is 6.2% on wages up to the annual wage base limit.
A state requires employers to withhold state income tax. If no state W-4 is provided, what is the general employer practice?
Answer: Default to the state's withholding tables using the equivalent of single with zero allowances
When no state withholding certificate is provided, employers typically default to withholding as single with zero allowances per most state guidelines.
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