IAB Payroll Processing & Administration

Question 1

Which federal form must employees complete to indicate their withholding allowances for federal income tax purposes?

Accepted Answer

Form W-4

Answer

Form W-2

Answer

Form 941

Answer

Form 1099

Question 2

What is the current Social Security tax rate paid by employees on wages up to the wage base limit?

Accepted Answer

6.20%

Answer

5.45%

Answer

7.65%

Answer

12.40%

Question 3

Form 941 must be filed with the IRS on what schedule?

Accepted Answer

Quarterly

Answer

Annually

Answer

Semi-annually

Answer

Monthly

Question 4

Which of the following is NOT subject to FICA (Federal Insurance Contributions Act) taxes?

Accepted Answer

Employer-paid health insurance premiums

Answer

Regular wages

Answer

Overtime pay

Answer

Bonuses

Question 5

What is the Medicare tax rate withheld from employee wages?

Accepted Answer

1.45%

Answer

1.25%

Answer

2.90%

Answer

3.80%

Question 6

Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay at what rate for hours worked over 40 in a workweek?

Accepted Answer

1.5 times the regular rate

Answer

1.0 times the regular rate

Answer

1.25 times the regular rate

Answer

2.0 times the regular rate

Question 7

Which payroll tax is paid solely by the employer and funds the federal unemployment insurance program?

Accepted Answer

FUTA

Answer

FICA

Answer

SUTA

Answer

Medicare surcharge