Taxes Test

The Social Security tax rate is

• 1.45%
• 6.20%
• 7.65%

Employees send their payroll taxes directly to the federal government.

• True
• False

Employers use which form to compute the amount of federal income tax to withhold?

• Form W-4
• Form W-2
• Form 1040EZ

Gross pay is the amount of pay the employee takes home.

• True
• False

Who completes Form W-4?

• Employer
• Employee
• IRS

The Wage and Tax Statement is also known as:

• Form W-2
• From 1040EZ
• Form W-4
• None of the Above

Which of the following is true?

• Only tips paid in cash are taxable.
• Only tip income reported on W-2 is taxable.
• Tip income is not taxable.
• All tip income is taxable.

Which of the following is not reported on Form W-2?

• Wages tips and other compensation
• Federal income tax withheld.
• Medicare tax withheld
• The number of withholding allowances claimed by the employee on W-4

Is the Relationship Test met by each of the following: a brother, a sister, and a stepchild?

• Yes
• No

Which person does not meet the Citizen or Resident Test?

• A U.S. citizen who lived in Japan for six months
• A permanent, full-time resident of Australia
• A permanent, full-time resident of Mexico
• A permanent, full-time resident of the United States