OCPS Payroll Processing & Tax Compliance 3

Question 1

Which form must a new employee complete so the employer can determine the correct federal income tax withholding?

Accepted Answer

W-4

Answer

Form W-4 (Employee's Withholding Certificate) tells the employer how much federal income tax to withhold from each paycheck.

Question 2

An employee earns $3,000 gross pay this period. The current OASDI rate is 6.2% and Medicare rate is 1.45%. What is the total employee FICA withholding?

Accepted Answer

$229.50

Answer

FICA = (6.2% + 1.45%) × $3,000 = 7.65% × $3,000 = $229.50.

Question 3

The Additional Medicare Tax of 0.9% applies to wages that exceed which threshold for a single filer?

Accepted Answer

$200,000

Answer

Employers must withhold the 0.9% Additional Medicare Tax on wages exceeding $200,000 paid to any individual employee in a calendar year.

Question 4

Which IRS form is filed quarterly to report wages paid and federal employment taxes withheld?

Accepted Answer

Form 941

Answer

Form 941 (Employer's Quarterly Federal Tax Return) is filed four times a year to report payroll taxes.

Question 5

Which type of pay is generally exempt from FICA taxes?

Accepted Answer

Certain employer contributions to qualified retirement plans

Answer

Employer contributions to qualified plans such as 401(k) are excluded from FICA taxation, unlike wages, overtime, and most bonuses.

(OCPS) Online Certified Payroll Systems Certified Professional Practice Test

(OCPS) Online Certified Payroll Systems Certified Professional Practice Test

OCPS Payroll Processing & Tax Compliance 3