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Exam 5: Unemployment Compensation Taxes

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Question 21

True/False

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​Even if the duties of depositing the FUTA taxes and filing Form 940 have been outsourced,the employer is still the responsible party.

A) True
B) False

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Question 22

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Educational assistance payments made to workers to improve skills required of their jobs are nontaxable for unemployment purposes.

A) True
B) False

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Question 23

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An employer must pay the quarterly FUTA tax liability if the liability is more than:

Insurance agents paid solely on a commission basis are not considered employees under FUTA.

If an employer is subject to a credit reduction because of Title XII advances,the penalty for the entire year will be paid only with the deposit for the last quarter of the year.

In the case of a part-time employee,the employer is not liable to pay any of the employee's earnings.

For FUTA purposes,an employer can be any one of the following except:

Refer to Instruction 5-1.Hunter Company had a FUTA taxable payroll of $192,700 for the year.Since the company is located in a state that has 1.5% FUTA credit reduction due to unpaid loans,determine Hunter's FUTA tax liability for the year.

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

Advance payments for work done in the future are not taxable wages for FUTA purposes.

FUTA tax deposits cannot be paid electronically.

Unlike Form 941,there is no penalty for the late filing of Form 940.

In order to avoid a credit reduction for Title XII advances,a state must repay the loans by:

There is a uniform rate of unemployment benefits payable by all states.

Currently,none of the states imposes an unemployment tax on employees.

Once a company attains the status of employer for FUTA purposes,that status continues for four calendar years.

In most states,the contribution reports and the wage information reports are filed quarterly.

Refer to Instruction 5-1.John Gercke is an employee of The Woolson Company.During the first part of the year,he earned $6,800 while working in State A.For the remainder of the year,the company transferred him to State B where he earned $16,500.The Woolson Company's tax rate in State A is 4.2%,and in State B it is 3.15% on the first $7,000.Assuming that reciprocal arrangements exist between the two states,determine the SUTA tax that the company paid to: a) State $A$ ___________ b) State B____________-

The person who is not an authorized signer of Form 940 is:

An aspect of the interstate reciprocal arrangement concerns: