Questions for Review
4-1
How is the amount of fringe benefit that is taxable to an employee determined?
It is the amount by which the fair market value of the fringe benefit exceeds what the
employee paid, plus any amount the law excludes.
4-2
Cash tips of __ or more that are received in a calendar month, in the course of employment
with a single employer, are treated as remuneration subject to income tax withholding.
$20.00.
4-3
Which of the following kinds of wage payments is non-exempted from the withholding of
federal income taxes:
Three weeks’ vacation pay
4-4
The maximum contribution that an employer can make to an employee’s SIMPLE account
must match the employee’s contribution up to a maximum of ___ percent of the employee’s
pay.
3%
4-5
The Maximum per year deferred contributions that employees under the age of 50 can
make into their 401(K) plans is lesser of ___ or ___ percent of their pay.
401(k) – $18,000 or 100%
4-6
The personal allowance amount is ___ the employee’s income in computing taxable income.
In 2015, the amount of a personal allowance was ___.
A deduction allowed in computing taxable income - $3,650
, 4-7
Orrin D’Amato, single, participates in his firm’s pension retirement plan. This year, his
modified adjusted gross income will be about $75,000. How much of his compensation may
D’Amato contribute to an IRA this year without paying federal income taxes on the
contribution?
$5,500
4-8
In which of these situations are employer contributions into employee’s health savings
accounts excluded from the employee’s taxable income?
All of the above
4-9
Employees who are exempt from the withholding of federal income taxes are required to
submit to their employer ___ showing the exempt status.
Completed W-4
Algorithmic
4-1
Gross Pay = $800.00
Federal Income Tax = $54.00
Social Security Taxes – OASDI = $49.60
Social Security Taxes – HI = $33.60
State Income Tax = $16.00
Net Pay = $136.80
4-2
1.) Amoroso, A. – $138.77
2.) Finley, R. – $88.43
3.) Gluck, E. – $495.31
4.) Quinn, S. – $0.00
5.) Treave, Y. – $77.50
4-1
How is the amount of fringe benefit that is taxable to an employee determined?
It is the amount by which the fair market value of the fringe benefit exceeds what the
employee paid, plus any amount the law excludes.
4-2
Cash tips of __ or more that are received in a calendar month, in the course of employment
with a single employer, are treated as remuneration subject to income tax withholding.
$20.00.
4-3
Which of the following kinds of wage payments is non-exempted from the withholding of
federal income taxes:
Three weeks’ vacation pay
4-4
The maximum contribution that an employer can make to an employee’s SIMPLE account
must match the employee’s contribution up to a maximum of ___ percent of the employee’s
pay.
3%
4-5
The Maximum per year deferred contributions that employees under the age of 50 can
make into their 401(K) plans is lesser of ___ or ___ percent of their pay.
401(k) – $18,000 or 100%
4-6
The personal allowance amount is ___ the employee’s income in computing taxable income.
In 2015, the amount of a personal allowance was ___.
A deduction allowed in computing taxable income - $3,650
, 4-7
Orrin D’Amato, single, participates in his firm’s pension retirement plan. This year, his
modified adjusted gross income will be about $75,000. How much of his compensation may
D’Amato contribute to an IRA this year without paying federal income taxes on the
contribution?
$5,500
4-8
In which of these situations are employer contributions into employee’s health savings
accounts excluded from the employee’s taxable income?
All of the above
4-9
Employees who are exempt from the withholding of federal income taxes are required to
submit to their employer ___ showing the exempt status.
Completed W-4
Algorithmic
4-1
Gross Pay = $800.00
Federal Income Tax = $54.00
Social Security Taxes – OASDI = $49.60
Social Security Taxes – HI = $33.60
State Income Tax = $16.00
Net Pay = $136.80
4-2
1.) Amoroso, A. – $138.77
2.) Finley, R. – $88.43
3.) Gluck, E. – $495.31
4.) Quinn, S. – $0.00
5.) Treave, Y. – $77.50
