Q1. All of the following are properly definedas wages subject to the withholding of federal incometaxes except _______.
- year-endbonus
- kitchen appliances givenby manufacturer in lieu of cash wages
- dismissalpayment
- vacation pay
- payments made underworker's compensation law
Q2. Which of the following non cash fringe benefits does not represent taxable income subject to federalincome tax withholding?
- flight onemployer-provided airline
- personal use of companycar
- sick pay
- employer-paid membershipto a country club
- All of the above are taxable.
Q3. A personal allowance ________.
- amounted to $2,000in 2008
- may be claimed to exempta portion of their earnings from withholding
- is indexed for inflationevery calendar quarter
- may be claimed at thesame time with each employer for whom an employee isworking during the year
- may not be claimed bynonresident aliens from Argentina
Q4. To curb the practice of employees filingfalse Forms W-4, the IRS requires that an employer submit to theagency a copy of each Form W-4 ________.
- the IRS has requested inwriting
- on which an employee,usually earning $180 each week at the time Form W-4 was filed, nowclaims to be exempt from withholding
- on which an employeeclaims to be single but has 9 withholding allowances
- on which a marriedemployee claims no withholding allowances
- on which a recentlydivorced employee claims 5 withholding allowances and authorizes anadditional $10 to be withheld each week
Q5. A company must withhold federal incometaxes from payments made to independent contractors in which of the following cases?
when there is a signedcontract between the parties
- when the contractor ispaid more than $10,000
- when the contractor is acorporation
- when the contractor hasnot provided a taxpayer identification number and the contract is$600 or more
- all of the above