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Exam 5: Unemployment Compensation Taxes

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Question 1

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Refer to Instruction 5-1.Faruga Company had FUTA taxable payrolls for the four quarters of 2018 of $28,400;$19,600;$16,500;and $8,900,respectively.The company was located in a state that was subject to a FUTA credit reduction of 1.5%.What was the amount of Faruga's first required deposit of FUTA taxes?

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Question 2

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Schedule A of Form 940 only has to be completed by employers who are subject to the Title XII credit reduction.​

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B) False

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Question 3

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Christmas gifts,excluding noncash gifts of nominal value,are taxable wages for unemployment purposes.

"Dumping" is legal in all but a few states.

In some states,employers may obtain reduced unemployment compensation rates by making voluntary contributions to the state fund.

If the employer has made timely deposits that pay the FUTA tax liability in full,the filing of Form 940 can be delayed until:

If an employee works in more than one state,the employer must pay a separate SUTA tax to each of those states in which the employee earns wages.

FUTA and SUTA coverages extend to U.S.citizens working abroad for American employers.

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

If an employer pays unemployment taxes to two states,it will have the same SUTA tax rate in both states.

The mailing of Form 940 is considered timely if it is postmarked on or before the due date.

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

For FUTA purposes,the cash value of remuneration paid in any medium other than cash is not considered taxable wages.

Included under the definition of employees for FUTA purposes are:

An employer can use a credit card to pay the quarterly deposit of FUTA taxes during the year.​

Partnerships do not have to pay unemployment taxes on the wages of their employees.

Which of the following is not a factor considered in determining coverage of interstate employees?

Refer to Instruction 5-1.In the first quarter of the year,Henry Gibson earned $3,000 in wages and reported $2,400 in tips to his employer.How much would the employer's FUTA tax be for the first quarter on Gibson?

Refer to Instruction 5-1.Michael Mirer worked for Dawson Company for six months this year and earned $11,200.The other six months he earned $6,900 working for McBride Company (a separate company).The amount of FUTA taxes to be paid on Mirer's wages by the two companies is: a) Dawson Company____________ b) McBride Company______________

Services performed in the employ of a religious organization that is exempt from federal income tax are also exempt from FUTA coverage.