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Exam 5: Unemployment Compensation Taxes

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Question 21

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If the employer is tardy in paying the state contributions, the credit against the federal tax is limited to what percent of the late payments that would have been allowed as a credit if the contributions had been paid on time?

A) 6.2%
B) 90%
C) 5.13%
D) 20%
E) 0%

F) A) and C)
G) None of the above

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Question 22

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

A) True
B) False

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Question 23

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Directors of corporations who only attend and participate in board of directors' meetings are not covered as employees under FUTA.

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

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

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

Voluntary contributions to a state's unemployment department are:

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

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

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

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

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

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

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

On Form 940, even if the total FUTA tax is more than $500, there is no listing of quarterly federal unemployment tax liabilities.

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

In order to obtain the maximum credit allowed against the federal unemployment tax, the employer must have paid its SUTA contributions by the due date of Form 940.

Deposit by the:

Unemployment taxes (FUTA and SUTA) do not have to be paid by an employer who has only part-time employees.

Included under the definition of employees for FUTA purposes are: