1. Triad Chapter of APA Welcome to Our Study Group for the FPC and CPP Exams Saturday, March 19, 2016 Triad Chapter of APA Welcome to Our Study Group for the FPC and CPP Exams Saturday, March 19, 2016

2. Section 8 Depositing and Reporting of Taxes Review Questions/Exercises Section 8 Depositing and Reporting of Taxes Review Questions/Exercises

3. Payroll Tax Deposit Rules Employers with a total annual withheld Federal income tax, Social Security tax and Medicare tax liability of $1,000 or less will file Form 944, Employer’s Annual Federal tax Return.

4. Employer Identification Numbers Where do I get a new number Form SS-4 – Application for Employer Identification number Application on line Apply by phone Submit form by fax Application by Mail

5. Payroll Tax Deposit Rules Employers that file Form 941, Employer’s Quarterly Federal Tax Return, are assigned one of two depositor status classifications under the deposit rules: monthly or semiweekly The determination is based on the ER’s total liability for federal income, social security, and Medicare taxes during a “lookback period” and generally lasts for an entire calendar year.

6. Payroll Tax Deposit Rules Lookback period – 12-month period running from July 1 of the second previous year to June 30 of the previous year. Example: For 2015, the lookback period would be from July 1, 2013 – June 30, 2014.

7. Payroll Tax Deposit Rules Monthly depositor: total Form 941 liability during the lookback period for Federal, Social Security and Medicare taxes is $50,000 or less. Semi-weekly depositor: total Form 941 liability during the lookback period for Federal, Social Security and Medicare taxes is greater than $50,000.

8. New Employers New employers are monthly depositors. They continue to deposit on that basis until they accumulate more than $50,000 in tax liability during a lookback period or trigger the one- day deposit rule.

9. Deposit Requirements Monthly depositors – deposit accumulated tax liability for each calendar month by the 15 th of the following month. Semi-weekly Depositors – deposit taxes for wages paid on Wednesday, Thursday, or Friday by the following Wednesday. Taxes for wages paid on Saturday, Sunday, Monday or Tuesday by the following Friday.

10. One-Day Deposit Rule If an employer’s accumulated employment tax liability reaches $100,000 on any day during a monthly or semiweekly deposit period, the taxes must be deposited by the close of the next business day.

11. One-Day Deposit Rule If a monthly depositor accumulates at least $100,000 in tax liability on any day during a month, it not only must deposit the liability by the next day, but it also becomes a semi- weekly depositors for the remainder or the current calendar year and the entire next calendar year.

12. Quarterly “de minimis” Deposit Rule Employers with an accumulated tax liability of less than $2,500 for any quarter can deposit the liability according to their monthly or semiweekly depositor status or pay it with their Form 941 quarterly return.

13. Holiday Extension If the due date of the deposit is not a banking day (Saturday, Sunday, or a federal or state legal holiday) the deposit is due on the next available banking day.

14. EFTPS Requirements Electronic Federal Tax Payment System Organizations that deposit more than $200,000 in total federal tax deposits in any year must use EFTPS to make all their federal tax deposits beginning with the first return period in the second succeeding calendar year. Once an employer is required to deposit electronically, it cannot go back to using paper coupons and checks.

15. Penalties for Failure to Deposit on Time 2% of the undeposited amount if it is deposited within 5 days of the due date. 5% of the undeposited amount if it is deposited within 6-15 days of the due date.

16. Penalties for Failure to Deposit on Time 10% of the undeposited amount if it is deposited more than 15 days after the due date (also applies to amounts paid to the IRS within 10 days after receipt of the first IRS delinquency notice) and to deposits made with unauthorized financial institutions or directly to the IRS.

17. Penalties for Failure to Deposit on Time 15% of the undeposited amount if it is not paid within 10 days after the employer receives its first IRS delinquency notice or on the same day a notice and demand for payment is received.

18. Special Rule for Electronic Depositors If an employer who is required to deposit employment taxes electronically uses a check and a paper deposit coupon instead, the employer is subject to a 10% failure-to- deposit penalty because it failed for more than 15 days to make the deposit in the correct manner, even though the paper deposit was made timely.

19. 100% Penalty For Not Withholding and Paying Taxes Individuals who are responsible for collecting, accounting for, and paying over income, Social Security and Medicare taxes and who willfully fail to do so are subject to an additional penalty equal to the total amount of taxes involved. This is known as the “Trust Fund Recovery Penalty” or the “100% Penalty”.

20. Criminal Penalty In addition to the 100% penalty, responsible persons who willfully fail to collect and pay over taxes are guilty of a felony and can be fined up to $10,000 and/or imprisoned for up to 5 years.

21. The Employer’s Employment Tax Return – Form 941 Form 941 is to provide the IRS with a report of each employer’s total taxable wages paid and payroll liability, which can be matched against the employer’s records of tax deposits and wage and tax information provided to employees on their W-2 forms.

22. Who Must File Form 941 Form 941 is a quarterly return which must be filed by all employers that withhold federal income tax from employee compensation and are subject to withholding and payment of Social Security and/or Medicare taxes.

23. When to File 941 In general, employers must file Form 941 by the last day of the first month following the end of each calendar quarter. Example: March 31, 2015, is due by April 30, 2015. However, if the employer has made timely deposits of all its payroll liability for the quarter, an automatic extension of the filing period to the 10 th day of the next month is granted. Example: If deposits were made timely within the quarter and the 941 is for Quarter ending March 31, 2015, the due can be extended to May 10, 2015. The IRS will not grant any further extensions.

24. Form 941 – Line by Line Instructions Page 8-33 thru 8-41 provides detail step by step instructions for completing Form 941. Know this information for exam !

25. Schedule B Schedule B, Employer’s Record of Federal Tax Liability, records an employer’s payroll tax liability, not deposits made. The total should match the total from Line 10 of Form 941.

26. Annual Reporting of Nonpayroll Withholding-Form 945 The IRS removed all nonpayroll items from Form 941. The Service developed Form 945, Annual Return of Withheld Federal Income Tax, for businesses to report amounts withheld throughout the year from nonpayroll items such as pensions, annuities, gambling winnings, etc. as well as any backup withholding.

27. Monthly Reporting for Delinquent Employers – Form 941-M Employers that fail to withhold or deposit taxes or file returns on time may be required by the IRS to report employment taxes monthly rather than quarterly, using Form 941-M, Employer’s Monthly Federal Tax Return.

28. Monthly Reporting for Delinquent Employers – Form 941-M The IRS will notify an employer of its monthly reporting requirement by sending Form 2481, Notice to Make Special Deposit of Taxes. An employer required to file Form 941-M must do so by the 15 th of the month after the month for which the report is made.

29. Form 944 Small Employers Employer’s Annual Federal Tax Return for very small employers - instead of Form 941. Employers whose filing history shows that they owe $1,000 or less in employment taxes qualify.

30. Form 941C When errors are made in withholding or reporting Federal Income, Social Security, and Medicare taxes employers must follow procedures set forth in IRS regulations to correct the errors and pay the proper amount of taxes. The method of correction depends on the type of tax involved, whether the employer withheld or reported too little or too much, and when the error was made and discovered.

31. Form 941X Once an adjustment is made for Form 941 for under-withheld or over-withheld taxes, the employer must also complete and attach Form 941x, Statement to Correct Information. The purpose of Form 941x is to explain the nature of the adjustment and show the erroneous and corrected amounts of tax withheld.

32. Criminal Penalties Additions to tax, civil penalties, and interest are not the only penalties employers face when employment taxes are not paid and returns are not filed. Certain actions can also bring criminal fines and imprisonment.

33. Information Reporting for Employees Form W2 Report to the employees the amounts paid and withheld so the employees can complete their personal income tax returns The employer accomplishes this with Form W-2, Wage and Tax Statement.

34. Information Reporting for Employees Form W2 Final payroll wage withholding for previous year. Consider any pretax conditions that may effect the boxes listed on the W-2 Section 125 401(k) or other deferral plans.

35. Undeliverable Forms W2 Must keep those copies for four years Electronic versions acceptable The copies can be discarded if a revised W-2 form is sent to a new address. Mailing the Form W-2 to an employee’s last known address is considered a reasonable effort to make delivery.

36. Reissue/Charge for W2 Forms If an employee loses a Form W-2, or it is destroyed, the employer can issue a new copy to the employee and should write “Reissued Statement” on it. Employers cannot charge employees for providing them with an original or corrected W2. Employers can charge for providing employees with additional copies of a form that has been lost or stolen.

37. When and Where to File From W2 For employers filing Copy A on paper or magnetic media, the due date is the last day of February after the year to which the form applies. February 28, 2016 for calendar year 2015. For employers filing Copy A electronically, the due date is March 31 after the year to which the form applies. March 31, 2015 for calendar year 2015. Information is sent to SSA not IRS!

38. Employee Copy of W2’s Copies B, C and 2 are employee copies of Form W-2 and must be sent to employees by January 31 of the year after the year to which the form relates. If an employee leaves employment (voluntarily or involuntarily) before the end of a calendar year, there are two possibilities:

39. Employee Copy of W2’s 1. If the employer can wait until the next January 31 to send Form W2 to the ex- employee, 2. If the employee asks for a Form W2 in writing before the end of the year, the employer must send it within 30 days of the request.

40. Box by Box Instructions for Form W2 Page 8-75 through 8-83 provides step by step instructions on completing Form W-2. Know this information for exam!

41. Form W3 If filing paper W2 forms (Copy A), the employer must send them along with Form W-3, Transmittal of Wage and Tax Statements. Sent to SSA not IRS

42. Correcting Information – Forms W2c and W3c When errors have been made on a previously filed Form W-2, the employer must correct them by filing Form W-2c, Corrected Wage and Tax Statement. Form W-2c must be accompanied by Form W- 3c, Transmittal of Corrected Wages and Tax Statements when it is sent to the SSA.

43. IRS & SSA Reconciliation Employment tax returns are sent to the IRS, while W2’s and W3’s are sent to SSA. To make sure employer’s 941 agree to W2/W3, the IRS provides the SSA with information it receives from employers including 941c.

44. Information Returns for Nonemployee Payments – 1099 Series Employers must also report certain payments they make to non-employees, such as fees paid to independent contractors, payments from pension plans, and payment to estates and beneficiaries. Most reportable payments must be reported in the 1099 series.

45. Information Returns for Nonemployee Payments – 1099 Series An annual 1099 information statement must be sent to the nonemployee payee detailing the payments and any withholding, while a copy is sent to the IRS along with a transmittal form (Form 1096).

46. Form 1099-MISC Businesses making certain payments to nonemployees in the course of their business must report those specific payments to the nonemployees and the IRS on Form 1099- MISC, Statement for Recipients of Miscellaneous Income. Payments totaling $600 in a calendar year must be reported.

47. Pension and Retirement Plan Distributions – Form 1099R Payers who make distributions of retirement income must report those payments and any amount withheld for federal income tax on Form 1099-R, Distribution From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRA’s, Insurance Contracts, etc.

48. Review Questions and Exercises What are the general deposit requirements for monthly, semiweekly and one-day depositors? (Page 8-8 & 9) A. Monthly Depositors (i.e. employers with $50,000 or less employment tax liability during the lookback period) must deposit their accumulated tax liability for each calendar month by the 15 th of the following month. B. Semiweekly depositors (i.e. employers with more than $50,000 in employment tax liability during the lookback period) must deposit employment taxes for wages paid on Wednesday, Thursday, and Friday by the following Wednesday. Employment taxes for wages paid on Saturday, Sunday, Monday, and Tuesday must be deposited by the following Friday. C. One-day Deposit Rule If an employer’s accumulated employment tax liability reaches $100,000 on any day during a monthly or semiweekly deposit period, the taxes must be deposited by the close of the next banking day.

49. Are you READY? A considerable amount of this information will be included on the exam. Know the 941 line items and your W-2 boxes

50. Thanks for Attending Questions Kathy Fearrington - CPP Krispy Kreme Doughnut Corporation 336-726-8913 Best of luck as you study for the exam!

51. Review Questions and Exercises Define the shortfall rule for semiweekly depositors? (Page 8-11) A. Shortfall Rule – The IRS allows a “safe harbor” shortfall so employers are not penalized for depositing a small amount less than the entire amount of their deposit obligation. An employer satisfies its deposit obligation if the amount of the shortfall is no more than the greater of $100 or 2% of the entire amount due, so long as the original deposit is made timely and the shortfall is deposited by the appropriate “make-up date”. Deposits up to $5,000 – shortfall is no more than $100.00 Deposits more than $5,000 – shortfall can be no more than 2% of the amount due.

52. Review Questions and Exercises What are the rules regarding the timeliness of mailed payroll tax deposits? (Page 8-12) A. Deposits mailed through the U.S. Postal Service or private delivery services designated by the IRS are considered timely if postmarked or given to the private delivery service at least two days before the due date, even though they may be received after the due date. However, deposits of $20,000 or more made by semiweekly depositors must be received by the deposit due date. For details on which private delivery services have been “designated” by the IRS, see Section 8.3-2

53. Review Questions and Exercises What is Form 8109 and what is it used for? (Page 8-19) Form 8109 – Federal Tax Deposit Coupon – it is used to deposit withheld federal income and employment taxes (among other taxes) with a financial institution that is authorized to accept federal tax deposits. Employers who are not required to use EFTPS may use the federal tax deposit coupons and pay by check, cash or money order. The coupon and deposit may also be mailed to: Financial Agent, Federal Tax Deposit Processing, P.O. Box 970030, St. Louis, MO 63197.

54. Review Questions and Exercises What is the 100% penalty? (Page 8-26) 100% Penalty for not withholding and paying taxes – Individuals who are responsible for collecting (withholding), accounting for, and paying over (depositing) income, Social Security and Medicare taxes and who willfully fail to do so are subject to an additional penalty equal to the total amount of the taxes owed. This is known as the “Trust Fund Recovery Penalty” or the “100% penalty.” For the 100% penalty to be applied, the responsible person must have acted willfully in not withholding and paying over trust fund (withheld income and employment) taxes. But willfulness does not necessarily mean an intent to defraud the federal government. Paying other creditors rather than depositing payroll taxes is a willful failure to pay, even though the payments are made to keep the business from failing.

55. Review Questions and Exercises What must be done with an undeliverable form W2c? (Page 8-77) A. Forms W2c that cannot be delivered to employees after a reasonable effort to do so must be kept by the employer for four years.

56. Review Questions and Exercises What is the purpose of Form 941-M? (Page 8-45) A. Employers that fail to withhold or deposit taxes or file returns on time may be required by the IRS to report employment taxes monthly rather than quarterly, using Form 941-M “Employer’s Monthly Federal Tax Return”.

57. Review Questions and Exercises What steps must be taken to obtain an EIN by phone? (Page 8-3&4) A. Complete Form SS-4 (Application for Employer Identification Number) before calling; B. Call 800-829-4933; C. Provide the requested information from Form SS-4; and D. If requested by the IRS representative, mail or fax Form SS-4 within 24 hours to the Tele-TIN unit at the address provided by the representative.

58. Review Questions and Exercises What is the look back period for determining an employer’s Form 941 payroll tax depositor status? (Page 8-5) A. The look back period is the 12-month period running from July 1 of the second previous year through June 30 of the previous. Example: July 1, 2013 – June 30, 2014.

59. Review Questions and Exercises Outline the penalties for failing to make payroll tax deposits on time. (Page 8-21) The following are the penalties for not making the payroll tax deposits on time: A. 2% of the under deposited amount if it is deposited within 5 days of the due date; B. 5% of the under deposited amount if it is deposited within 6 – 15 days of the due date; C. 10% of the under deposited amount if it is deposited more than 15 days after the due date; or D. 15% of the under deposited amount if it is not paid within 10 days after the employer receives its first IRS delinquency notice or on the same day that a notice and demand for payment is received.

60. Review Questions and Exercises What are the requirements for filing Form 941 by employers that are going out of business? (Page 8-32) An employer that will no longer be in business and will not be paying wages subject to Federal Income Tax withholding, Social Security, and Medicare taxes should do the following: A. Check the box on line 16 when completing it’s last Form 941 indicating that it will not file any returns in the future; B. Enter the date that final wages were paid; C. Attach a statement showing the address where the employer’s records will be kept, the name of the person keeping the records, and if the business has been sold or transferred, the name of address of the new owner and the date of the sale or transfer; D. File the Form 941 by the end of the first month after the end of the quarter during which the employer stopped paying wages; and E. File Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations, if the employer is no longer in business as the result of a Statutory Merger or Consolidation, or if it qualifies as a predecessor or successor after an acquisition.

61. Review Questions and Exercises On Form 941, how does the employer treat fractional cents that cause differences in calculating the employer’s and employees’ Social Security and Medicare taxes? (Page 8-36) Enter on Line 7a the difference between the total Social Security and Medicare taxes on Line 5d and the amount actually withheld from employees’ wages and paid by the employer that is due to rounding to the nearest penny.

62. Review Questions and Exercises What is Schedule B used for? (Page 8-39) Schedule B records an employer’s payroll tax liability, not its deposits. Semiweekly depositors at any time during a quarter must file a Schedule B with Form 941.

63. Review Questions and Exercises What form is used to record non-payroll withheld taxes? (Page 8-44) Form 945, Annual Return of Withheld Federal Income Tax.

64. Review Questions and Exercises What is the penalty for late filing of employment tax returns? (Page 8-51) Unless an employer has reasonable cause and is not guilty of willful neglect, late filing of Form 941 or other employment tax returns results in an “addition to tax,” the amount of which depends on how late the return is filed. The amount is; 5% of the amount of tax required to be shown on the return (after accounting for deposits and credits) for each month or fraction of a month that the return is late, to a maximum of 25% (15% per month to a maximum of 75% of the unpaid tax if the late filing is fraudulent).

65. Review Questions and Exercises What is the purpose of backup withholding? (Page 8-85) The purpose of backup withholding is to insure that income tax is paid on income reported on Form 1099.

66. Review Questions and Exercises Which amounts on Forms 941, W-2, and W-3 does the SSA compare to make sure employers are taxing and reporting wages correctly? (Page 8-83) The amounts compared by the SSA include: A. Social Security wages, B. Social Security tips, C. Medicare wages and tips, and D. Advanced earned income credit payments

67. Review Questions and Exercises What are the penalties for failure to file information returns on time and with correct information? (Page 8-88 & 89) The general penalties for failure to file information returns on time and with correct information are as follows: A. $15 per return if the failure to file or provide correct information is corrected within 30 days after the due date, with a maximum penalty of $75,000 as year ($25,000 for small businesses); B. $30 per return if the failure to file or provide correct information is corrected more than 30 days after the due date but before August 1 of the same year the return is due, with a maximum penalty of $150,000 a year ($50,000 for small businesses); and C. $50 per return if the failure to file or provide correct information is not corrected by August 1, with a maximum penalty of $250,000 ($100,000 for small businesses).

68. True/False Questions

69. New employers deposit their payroll tax liability as a semiweekly depositor. (Page 8-7) False New employers are classified as monthly depositors.

70. True/False Questions The shortfall rule allows an employer to deposit 95% of its payroll tax liability without a penalty. (Page 8-11) False At least 98% of the tax liability (or the liability - $100, if that is less) must be deposited to avoid late payment penalty.

71. True/False Questions New employers that must make a deposit before being assigned an EIN must make their deposit with the IRS service center where they will file their returns. (Page 8-5) True

72. True/False Questions Employers are entitled to a 10-day filing extension for Form 941 if they have deposited all payroll taxes when due throughout the quarter. (Page 8-33) True

73. True/False Questions An EIN is obtained from the Social Security Administration using Form SS4. (Page 8-3) False Filed with the IRS not the SSA.

74. True/False Questions If a semiweekly period overlaps quarters and you have two pay days-one in each quarter- you can choose which quarter to include the wages for purposes of making payroll tax deposits. (Page 8-9 & 10) False This scenario creates two separate deposit obligations that must be satisfied by the same day.

75. True/False Questions A new EIN is necessary if a new corporation emerges from a consolidation that does not qualify as a reorganization. (Page 8-5) True

76. True/False Questions An employer has accumulated payroll taxes on Form 941 of $42,000 during the 2015 lookback period. The employer is a semiweekly depositor for 2015. (Page 8-6) False The employer is a monthly depositor for 2015 because it’s total payroll tax liability for 2015 lookback period is less than $50,000.

77. True/False Questions If an employer accumulates taxes of $100,000 or more on any one day during a deposit period, it must deposit the liability by the next banking day. (Page 8-8) True

78. True/False Questions Payroll tax deposits that are mailed through the US Postal Service are considered timely if postmarked at least one day before the due date. (Page 8-12) False Deposits by US Mail are considered timely if postmarked at least two days before the due date, although deposits of $20,000 or more made by a semiweekly depositors must be received by the deposit due date.

79. True/False Questions Government employers that withhold federal income tax and only the Medicare portion of FICA taxes must report these taxes on Form 941. (Page 8-27) True

80. True/False Questions If an employer sells or transfers its business, a separate Form 941 must be filed by both the previous and current owners for the quarter in which the sale took place. (Page 8-28) True

81. True/False Questions If a monthly depositor has a total tax liability for a quarter of less than $2,500, the employer must pay it with Form 941. (Page 8-10) False The employer has the option to either deposit the amount or pay it with Form 941.

82. True/False Questions Copy A of all paper W-2 Forms and Form W-3 must be filed with the SSA by the last day of February of the year following the calendar year for which wages are reported. (Page 8-73) True

83. True/False Questions When receiving undercollected taxes from employees, any overcollection of taxes from one employee may be used to offset an undercollection from another. (Page 8-49) False When recovering undercollections from employees, each employee must be treated separately, so an overcollection of taxes from one employee can not be used to offset an undercollection from another.

84. True/False Questions Where there has been a merger or consolidation of two employers and one survives, the surviving corporation is considered to be the same employer as the acquired company and therefore must provide Forms W-2 to all the employees of the acquired company. (Page 8-54) True

85. True/False Questions Allocated tips should be included in Box 1 of Form W2. (Page 8-65) False Allocated tips should not be included in Box 1, 5, or 7 of Form W-2, but they should be included in Box 8.

86. True/False Questions Employers wishing to substitute W-2 Forms should send a sample to the IRS or SSA for approval prior to use. (Page 8-72) False In general, employers wishing to use substitute W-2 Forms should not send a sample to the IRS or SSA for approval prior to use.

87. True/False Questions Dollar amounts should be entered on Form W-2 without commas or dollar signs. (Page 8-73) True

88. True/False Questions Form W-3 is used only by employers that file paper Copies A of Form W-2 with the SSA. (Page 8-73) True

89. True/False Questions Nonprofit organizations engaged in a trade or business are exempt from the 1099 reporting requirements. (Page 8-84) False Nonprofit organizations engaged in a trade or business are not exempt from Form 1099 reporting requirements.

90. True/False Questions All paper Forms 1099 must be sent to the SSA with the appropriate transmittal form by February 28 of the year following the year in which payments were made. (Page 8-86) False Forms 1099 must be sent to the IRS Service Center listed on the 1099 series instructions.

91. True/False Questions Businesses that must file 250 or more Forms 1099-MISC are required to file them electronically. (Page 8-86) True

92. Multiple Choice Questions

93. When an employer has been unable, after a reasonable effort, to deliver an employee’s copies of Form W-2, how long must it keep those copies? A. 5 Years B. 3 Years C. 2 Years D. 4 Years

94. Multiple Choice Questions Where does the employer send Form 1099-MISC? A. IRS B. SSA C. INS D. Wage & Hour Division

95. Multiple Choice Questions Distributions from retirement plans and payments of matured annuity, endowment, and life insurance contracts must be reported on what form? A. Form W-2P B. Form W-2 C. Form W-3 D. Form 1099-R

96. Multiple Choice Questions If a monthly depositor accumulates $100,000 in tax liability on any day during a month, how does this effect the employers depositor status? A. Remains monthly B. Becomes semiweekly for the rest of the year C. Becomes semiweekly for the rest of the current year and all of next year D. Becomes a 1-day depositor for the rest of the year

97. Multiple Choice Questions When must a semiweekly depositor with a Friday payday deposit its employment tax liability? A. The following Tuesday B. The following Wednesday C. The following Thursday D. The following Friday

98. Multiple Choice Questions What are the due dates for Form W-2? A. To employees and SSA by January 31st B. To employees by January 31 st and to SSA by the last day of February (March 31 st if filed electronically) C. To employees and IRS by February 28th D. To employees by January 31 st and to IRS by February 28 th.

99. Multiple Choice Questions What form is completed by new employers when requesting an EIN? A. Form SS-4 B. Form SS-5 C. Form SS-8 D. Form W-9

100. Multiple Choice Questions What form is used to report backup withholding? A. Form 941 B. Form 942 C. Form 943 D. Form 945

101. Multiple Choice Questions How frequently are new employers that anticipate having an annual tax liability of more than $1,000 required to make federal income and employment tax deposits? A. Semiweekly B. Monthly C. The next banking day D. Quarterly

102. Multiple Choice Questions On May 31 st, a monthly depositor’s tax liability is $15,000. When is the deposit due? A. June 7 B. June 1 C. June 15 D. June 30

103. Multiple Choice Questions XYZ Corporation, a semiweekly depositor, has a payroll tax liability of $65,000 on the first Thursday in December 2015. When must the liability be deposited? A. The following Wednesday B. The following Friday C. The 15 of the following month D. With the quarterly Form 941

104. Multiple Choice Questions Northwestern Shipping Corp. accumulates payroll tax liability on the Friday before Labor Day of $131,640. When is the deposit due? A. The Friday before Labor Day B. The following Tuesday C. The following Wednesday D. The following Friday

105. Multiple Choice Questions Adjustments for fractional cents are reported on what line on Form 941? A. 8 B. 7a C. 4 D. 9

106. Multiple Choice Questions If an employer overwithholds Federal Income tax from its employees’ wages and discovers the error after filing Form 941 for the quarter during which the error was made, which option is not available to the employer? A. The employer may reimburse the employee for the overwithheld amount. B. The employer may reduce future withheld taxes during the same calendar year that the error occurred C. The employer may apply the overwithheld amount to the next calendar quarter in the same year that the error occurred D. The employer may apply the overwithheld amount to the following year to reduce the amount withheld in the new year

107. Multiple Choice Questions What form must be attached to Form 941 to explain adjustments taken on Form 941? A. Form 941-M B. Form 941c C. Form 843 D. An amended Form 941

108. Multiple Choice Questions What form is used to request a refund of overpaid taxes? A. Form 941 B. Form 941c C. Form 940 D. Form 843

109. Multiple Choice Questions To satisfy federal, state, and local taxing agency requirements, which copies of the Form W-2 must the employee receive by January 31? A. Copies A, B, and C B. Copies B, C, and 1 C. Copies B, C, and 2 D. Copies B, 1, and 2

110. Multiple Choice Questions When an employee leaves employment before the end of the calendar year and requests Form W-2 in writing, how long does the employer have to send it? A. 10 days from the request B. 15 days from the request C. 20 days from the request D. 30 days from the request

111. Multiple Choice Questions On Form W-2, what box is used to report wages, tips, and other compensation? A. Box 1 B. Box 10 C. Box 12 D. Box 14

112. Multiple Choice Questions Employer-provided dependent care assistance must be reported in boxes 1, 3, and 5 of Form W-2 when the assistance exceeds what amount? A. 2,000 B. 3,000 C. 5,000 D. 7,500

113. Multiple Choice Questions What code is entered in Box 12 on Form W-2 when the value of Group- Term Life Insurance over $50,000 is reported? A. Code C B. Code D C. Code E D. Code F

114. Multiple Choice Questions What is the threshold amount for requiring reporting of service payments to individuals who are not employees on Form 1099-MISC? A. $10 B. $400 C. $600 D. $550

115. Multiple Choice Questions What is the transmittal form that accompanies each Form 1099 series if the forms are filed on paper? A. Form W-3 B. Form 1096 C. Form 8109 D. Form 1099-R