Income Tax Fundamentals 2016 34th Edition
1. If an employee does not complete a Form W-4, the employer must withhold tax as if the employee were single with no exemptions.
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2. If a husband and wife both work, they must divide their withholding allowances equally on their W-4 Forms.
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3. Reimbursements of moving expenses are always subject to withholding.
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4. The two most common methods of determining federal income tax withholding are the percentage method and the wage bracket method.
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5. If taxpayers fail to provide their bank with an identification number, they are subject to backup withholding on interest payments.
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6. Taxpayers with large amounts of deductions may claim extra withholding allowances on their Form W-4s.
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7. What percentage of gross food and beverage sales is used in determining the amount of tips that an employer must report as allocated to employees?
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8. Gordon is 60 years old and Mary is 55 years old. They are married with three dependent children over age 17, and Gordon has one job. Assuming that Mary is unemployed, how many allowances should Gordon claim on his Form W-4, assuming no extra allowances for deductions or adjustments?
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9. Which of the following amounts paid by an employer to an employee is not subject to withholding?
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10. Mark the incorrect answer. In completing W-4s, employees may claim extra allowances:
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11. Payors are not required to use backup withholding if:
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12. Steve is a single man who lives by himself. He has one job as a computer technician. How many withholding allowances can he claim?
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