Fundamental Payroll Certification Fundamental Payroll Payroll Reporting and Compliance 2

Question 1

An employer discovers an error on a previously filed Form 941. Which form must be used to correct it?

Accepted Answer

Form 941-X

Answer

Form 941-X is the Adjusted Employer's Quarterly Federal Tax Return used to correct errors on a previously filed Form 941.

Question 2

What is the due date for depositing payroll taxes when an employer has a monthly deposit schedule and the liability was incurred in July?

Accepted Answer

August 15

Answer

Monthly schedule depositors must deposit payroll taxes by the 15th of the month following the month the liability was incurred.

Question 3

Which IRS publication provides the withholding tables employers use to calculate federal income tax withholding?

Accepted Answer

Publication 15 (Circular E)

Answer

IRS Publication 15, also known as Circular E (Employer's Tax Guide), contains the federal income tax withholding tables and employer instructions.

Question 4

An employee claims exempt from federal income tax withholding on Form W-4. How long is this exemption valid?

Accepted Answer

One calendar year

Answer

A withholding exemption claimed on Form W-4 expires on February 15 of the following year, making it valid for one calendar year.

Question 5

Which of the following is reported in Box 12 of Form W-2 using Code DD?

Accepted Answer

Cost of employer-sponsored health coverage

Answer

Code DD in Box 12 of Form W-2 reports the cost of employer-sponsored health coverage under an employer-sponsored plan.

Fundamental Payroll Certification Practice Test