1. All of the following benefits are taxable compensation except:
The Payroll Source Section 3.2-1
c. Business use of a company car
3 multiple choice options
1. Which facts qualifies an employee for executive exemption ?
The Payroll Source Section 2.4-1
hire or fire others
manage 2+ employees / the company
paid a salary of at least $684 per week
1. Which of the following types of compensation is reported on Form W-2, but is NOT subject to federal
income tax withholding?
The Payroll Source Section 3.3-1
c. Value of group-term life insurance over $50,000.00
,2. Employers must provide Form W-2 to employees no later than:
The Payroll Source Section 8.8-1
b. January 31
2. What is the maximum elective deferral to a 401(k) plan during 2024 by an employee under 50 years of age
which is not included in federal gross income?
The Payroll Source Section 4.6-1
b. $23,000.00
2. Who, if anyone, is liable if an employer fails to respond to an IRS tax levy against an employee's wages?
The Payroll Source Section 9.1-1
a. Employer only
3. An employee whose year-to-date wages are $60,000.00 receives a net bonus check of $100.00. The
employee is not subject to state income tax. Using the supplemental optional flat rate, calculate the gross
amount of the employee's bonus payment.
The Payroll Source Section 3.4-11
b. $142.15 - gross up
,3. Which of the following deductions from an employee's pay has the highest priority?
The Payroll Source Section 9.1-2
b. Child support
federal tax levy - depends on whether css or tax order was issued first
3 multiple choice options
4. In which of the following situations may an employee claim to be exempt from federal income tax
withholding on Form W-4?
The Payroll Source Section 6.3-1
d. Employee did not incur tax liability in the preceding year and does not expect to incur tax liability in the
current year
4. What amount would be included in the employee's income when the employer chooses to pay the taxes on
a bonus of $800.00 and to use the supplemental optional flat rate for calculating the federal income tax? The
employee's year-to-date earnings are $17,500.00 and the employee is not subject to any state income tax.
The Payroll Source Section 3.4-11
c. $1,137.17
, 4. What are the maximum earnings, if any, subject to Medicare tax?
The Payroll Source Section 6.7-2
no limit (different base from soc sec)
5. Documents relating to federal income, social security and federal unemployment taxes must be retained for
a minimum of:
The Payroll Source Section 10.2
c. 4 years
5. For federal tax purposes, what is the minimum retention period for records when the employer does not
claim a refund, credit, or abatement?
The Payroll Source Section 10.2
a. 4 years from the due date of the return or the date the tax is paid, whichever is later
The Payroll Source Section 3.2-1
c. Business use of a company car
3 multiple choice options
1. Which facts qualifies an employee for executive exemption ?
The Payroll Source Section 2.4-1
hire or fire others
manage 2+ employees / the company
paid a salary of at least $684 per week
1. Which of the following types of compensation is reported on Form W-2, but is NOT subject to federal
income tax withholding?
The Payroll Source Section 3.3-1
c. Value of group-term life insurance over $50,000.00
,2. Employers must provide Form W-2 to employees no later than:
The Payroll Source Section 8.8-1
b. January 31
2. What is the maximum elective deferral to a 401(k) plan during 2024 by an employee under 50 years of age
which is not included in federal gross income?
The Payroll Source Section 4.6-1
b. $23,000.00
2. Who, if anyone, is liable if an employer fails to respond to an IRS tax levy against an employee's wages?
The Payroll Source Section 9.1-1
a. Employer only
3. An employee whose year-to-date wages are $60,000.00 receives a net bonus check of $100.00. The
employee is not subject to state income tax. Using the supplemental optional flat rate, calculate the gross
amount of the employee's bonus payment.
The Payroll Source Section 3.4-11
b. $142.15 - gross up
,3. Which of the following deductions from an employee's pay has the highest priority?
The Payroll Source Section 9.1-2
b. Child support
federal tax levy - depends on whether css or tax order was issued first
3 multiple choice options
4. In which of the following situations may an employee claim to be exempt from federal income tax
withholding on Form W-4?
The Payroll Source Section 6.3-1
d. Employee did not incur tax liability in the preceding year and does not expect to incur tax liability in the
current year
4. What amount would be included in the employee's income when the employer chooses to pay the taxes on
a bonus of $800.00 and to use the supplemental optional flat rate for calculating the federal income tax? The
employee's year-to-date earnings are $17,500.00 and the employee is not subject to any state income tax.
The Payroll Source Section 3.4-11
c. $1,137.17
, 4. What are the maximum earnings, if any, subject to Medicare tax?
The Payroll Source Section 6.7-2
no limit (different base from soc sec)
5. Documents relating to federal income, social security and federal unemployment taxes must be retained for
a minimum of:
The Payroll Source Section 10.2
c. 4 years
5. For federal tax purposes, what is the minimum retention period for records when the employer does not
claim a refund, credit, or abatement?
The Payroll Source Section 10.2
a. 4 years from the due date of the return or the date the tax is paid, whichever is later
