Payroll Processing and Taxation Quiz
Test your knowledge on payroll processing & taxation. Learn about W-4, 941, FICA, penalties, & more. Stay compliant with IRS regulations.
#1
What is the purpose of Form W-4?
To report income earned
To request federal income tax withholding
To calculate Social Security taxes
To claim tax deductions
#2
Which tax form is used to report wages paid to employees?
Form W-2
Form W-4
Form 1099
Form 1040
#3
What is FICA tax used to fund?
Medicare
Social Security
Unemployment benefits
Federal income tax
#4
What is the penalty for not depositing federal payroll taxes on time?
10% of the total tax amount due
20% of the total tax amount due
5% of the total tax amount due
Varies based on the delay period and amount owed
#5
What is the Federal Unemployment Tax Act (FUTA) primarily used for?
To fund state unemployment programs
To fund federal unemployment benefits
To fund Social Security programs
To fund Medicare programs
#6
Which of the following is NOT a required deduction from an employee's paycheck?
Federal income tax
State income tax
FICA tax
401(k) contributions
#7
What is the purpose of Form 940?
To report state unemployment taxes
To report federal unemployment taxes
To report state income taxes
To report federal income taxes
#8
Which form is used to report non-employee compensation?
Form W-2
Form W-4
Form 1099-MISC
Form 1040
#9
What is the purpose of Form 941?
To report federal income tax withheld
To report quarterly wages and payroll taxes
To report state income tax withheld
To report annual wages and payroll taxes
#10
What is the penalty for not filing Form 941?
5% of the unpaid tax for each month the return is late
10% of the unpaid tax for each month the return is late
20% of the unpaid tax for each month the return is late
Varies based on the amount owed and the delay period
#11
Which payroll tax is NOT withheld from an employee's paycheck?
Federal income tax
FICA tax
State income tax
Federal unemployment tax
#12
What is the threshold for an employee to be exempt from FICA taxes?
$10,000
$15,000
$20,000
There is no threshold; all employees are subject to FICA taxes
#13
What is the maximum amount of earnings subject to Social Security tax?
$100,000
$150,000
There is no maximum limit
Varies depending on the state
#14
Which tax form is used to report self-employment income?
Form W-2
Form W-4
Form 1099-MISC
Schedule C (Form 1040)
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