Payrooll Accounting

1 . The Social Security Act ed every state to set up an unemployment compensation program

a . True

b . False

2 . Services performed by a child under the age of 21 for a parent-employer are excluded from FUTA coverage

a . True

b . False

3 . Form 940 must be mailed to the IRS by January 15

a . True

b . False

4 . `Dumping` is legal in all but a few states

a . True

b . False

5 . The mailing of Form 940 is considered timely if it is postmarked on

br or before the due date

a . True

b . False

6 . A federal unemployment tax is levied on _______

a . employees only

b . both employers and employees

c . employers only

d . government employers only

e . no one

7 . For FUTA purposes , an employer can be any one of the following except _______

a . an individual

b . a partnership

c . a trust

d . a corporation

e . All of the above can be employers

8 . Included under the definition of employees for FUTA purposes are _______

a . independent contractors

b . insurance agents paid solely on commission

c . student nurses

d . officers of a corporation

e . members of partnerships

9 . Which of the following types of payments are not taxable wages for federal unemployment tax

a . retirement pay

b . cash prizes and awards for doing outstanding work

c . dismissal pay

d . bonuses as remuneration for services

e . payment under a guaranteed annual wage plan

10 . Which of the following provides for a reduction in the employers state unemployment tax rate based on the employers experience with the risk of unemployment

a . voluntary contribution

b . Title XII advances

c . pooled-fund laws

d . experience-rating plan

e . of the above Reference

Publication 15 (2008 (Circular E , Employer 's Tax Guide . Retrieved April 7 , 2008 , from http /www .irs .gov /publications /p15 /ar02 .html

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