Payroll Quiz Wk 05 - 1. Under the federal income tax...

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1. Under the federal income tax withholding law, which of the following is not defined as an employee? A) Partner who draws compensation for services rendered the partnership B) General manager, age 66 C) Payroll clerk hired one week ago D) Governor of the state of Florida E) Secretary employed by a not-for-profit corporation 2. Which of the following noncash fringe benefits does not represent taxable income subject to federal income tax withholding? A) Flight on employer-provided airline B) Personal use of company car C) Sick pay D) Employer-paid membership to a country club E) All of the above are taxable. 3. For which of the following payments is the employer required to withhold federal income taxes? A) Advances made to sales personnel for traveling expenses B) Tipped employee's monthly tips of $120 C) Deceased person's wages paid to the estate D) Minister of Presbyterian church E) All of the above 4. Which of the following statements correctly describes the withholding of federal income taxes and social security taxes on tips? A) Tips amounting to $10 or more in a calendar month must be reported by tipped employees to their employers. B) The withholding of federal income taxes on employees' reported tip income is made from the amount of tips reported by employees. C) When employees report taxable tips in connection with employment in which they also receive regular wages, the amount of tax to be withheld on the tips is computed as if the tips were a supplemental wage payment. D) Employers do not withhold FICA taxes on the tipped employees' reported tip income.
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Payroll Quiz Wk 05 - 1. Under the federal income tax...

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