Certified Payroll Professional Module 7 Quizzes

Certified Payroll Professional Module 7 Quizzes. When correcting information on a previously filed Form W-2 by filing Forms W-2c on paper, Form W-3c is used as a transmittal form. Form W-3 is used to transmit paper Forms W-2 to SSA. Forms 843 and 941-X are stand-alone forms which do not require transmittal forms.

For more information, refer to Module 7, Lesson 4

Form W-3c accompanies which form?

  1. Form W-2
  2. Form W-2c – Correct Answer
  3. Form 843
  4. Form 941-X

Collection of underwithheld or refund of overwithheld federal income tax can only be made during the calendar year of the over or under withholding. Social security and Medicare tax adjustments can be made until the period of limitations expires, generally three years after filing the last tax return reporting the wages or taxes.

For more information, refer to Module 7, Lesson 4

Adjustments of overwithheld federal income tax can be made at all the following times EXCEPT in the:

  1. calendar year after the error occurred. Correct Answer
  2. same month the error occurred.
  3. same quarter the error occurred.
  4. same calendar year the error occurred.
  5. 545p. 548

If you go to page 545 and 548, you get the below:

Federal income tax overcollected—discovered after Form 941 is filed. If an employer overwithholds federal income tax from an employee’s wages and discovers the error after filing Form 941 for the quarter during which the error was made but in the same calendar year, it can either repay or reimburse the employee for the overwithheld amount. In addition, the employer must file Form 941-X in the quarter the error was discovered to correct the overwithholding. However, an employer must repay the overwithheld amount before the end of the calendar year during which the error was made as well as obtaining and keeping the employee’s written statement with the date and amount repaid. Employers that reimburse employees for overwithheld amounts by reducing future withheld taxes can do so only during the same calendar year the error occurred.

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Monthly or semiweekly depositors incurring a liability of $100,000.00 or more are required to deposit the liability from the deposit period on the next business day. A monthly depositor incurring a liability of $100,000.00 or more becomes a semiweekly depositor for the remainder of the year and the next calendar year.

For more information, refer to Module 7, Lesson 1

When a monthly depositor’s tax liability during its deposit period exceeds $100,000.00, it must deposit taxes by the:

  1. next business day for all future deposits.
  2. next business day and follow the semiweekly schedule thereafter. – Correct Answer
  3. next Wednesday or Friday and follow the semiweekly schedule thereafter.
  4. 15th day of the following month.

***

Form 941, Employer’s Quarterly Tax Return, is used to report wages subject to income, social security, and Medicare taxes as well as the tax deposits and liabilities. Gross wages and wages in excess of the social security wage base are not reported to the IRS and state income tax is reported on Form W-2 and state returns.

For more information, refer to Module 7, Lesson 2

Form 941 is used to report:

  1. federal income tax withheld. . – Correct Answer
  2. gross wages.
  3. state income tax.
  4. social security wages over the maximum wage base.

***

Schedule R (Form 941) is used to allocate the aggregate information reported on Form 941 by an agent to each client. Schedule D is used to report discrepancies caused by acquisitions, statutory mergers, or consolidations. Schedule B (Form 941) records an employer’s payroll tax liability by day, not the deposits.

For more information, refer to Module 7, Lesson 2

Schedule R (Form 941) is used to:

  1. allocate discrepancies caused by acquisitions, statutory mergers, or consolidations.
  2. report daily tax deposits reported on Form 941 by semiweekly depositors.
  3. report daily tax liabilities on Form 941 for semiweekly depositors.
  4. allocate the aggregate information reported on Form 941 by an agent to each client.  – Correct Answer

***

The correct answer is: $153.00

After an employee’s death, amounts owed the employee paid in the year of the employee’s death are subject to social security (6.2%) and Medicare (1.45%) taxes. If the payment is made in the year after the employee’s death, the payment is not subject to social security and Medicare taxes. The payment after death is not subject to income tax withholding but is reported to the recipient of the payment on Form 1099-MISC.

For more information, refer to Module 7, Lesson 5

An employee who died in March, 2023 is owed a $2,000.00 bonus. The employee’s total YTD compensation is $50,000.00. Calculate the total amount of federal taxes to be withheld from the bonus paid in May, 2023.

***

On Form W-2, Box 8 is used to report allocated tips. Box 12 Code L is used to nontaxable per diems and mileage. Box 11 is used to report nonqualified plans deferrals or distributions. Box 10 is used to report Dependent Care Benefits.

For more information, refer to Module 7, Lesson 3

Which box on the 2023 Form W-2 is correctly matched with its use?

  1. Box 12 (Code L) – GTL insurance over $50,000.00
  2. Box 10 – Federal income tax withheld
  3. Box 11 – Social security tips
  4. Box 8 – Allocated tips– Correct Answer

***

Employers who have more than one worksite must provide quarterly employment and wage information reports pertaining for all their worksites to be used by the federal Bureau of Labor Statistics.

For more information, refer to Module 7, Lesson 2

Which Department of Labor agency requests employers to complete a Multiple Worksite Report?

  1. Employment and Training Administration
  2. Occupational Safety and Health Administration
  3. Wage and Hour Division
  4. Bureau of Labor Statistics Correct Answer

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The shortfall deposit ($100 or 2% of the liability due, whichever is greater) must be deposited by the first Wednesday or Friday on or after the 15th of the next month or the due date of Form 941, whichever is earlier.

For more information, refer to Module 7, Lesson 1

A semiweekly depositor pays only 98% of its tax liability by the Friday due date. The unpaid balance must be deposited:

  1. by the next business day.
  2. within three business days.
  3. by the first Wednesday or Friday on or after the 15th day of the next month or the due date of Form 941, whichever is earlier. Correct Answer
  4. by the due date of Form 941.

***

Voiding a check that was not constructively received in a subsequent year requires correcting wages and taxes reported using Forms W-2c, 941-X, and the appropriate state forms. Since the employee never received the monies, no refund is due.

For more information, refer to Module 7, Lesson 4

Voiding a check issued in error in a prior year after all returns were filed requires all of the following procedures EXCEPT:

  1. a refund by other taxing agencies.
  2. submission of Form W-2c.
  3. a refund to the employee. Correct Answer
  4. a refund by the IRS.

***

Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, must be filed by March 15 of the year following the year to which it relates.

For more information, refer to Module 7, Lesson 3

Form 1042 must be provided to the IRS by:

  1. January 31.
  2. February 28.
  3. March 15. Correct Answer
  4. March 31.

***

When an employer’s FUTA tax liability is more than $500.00 for the quarter, taxes must be deposited by the end of the month following the end of the quarter.

For more information, refer to Module 7, Lesson 3


If an employer’s cumulative FUTA tax liability is more than $500.00, the tax must be deposited each quarter. The employer must deposit the entire liability by the last day of the month following the end of the quarter. The deposit dates for each quarter are as follows:

  • First quarter ends March 31, deposit due April 30
  • Second quarter ends June 30, deposit due July 31
  • Third quarter ends Sept. 30, deposit due Oct. 31

If an employer’s cumulative FUTA tax liability is more than $500.00,how often must the tax be deposited?

  1. Semiweekly
  2. Monthly
  3. Quarterly
  4. Annually

***

Corrections to Form 941 are made using Form 941-X. Form 843 is used to request a refund of an assessment. Form 943 is used by agricultural employers. Form 944 can be used by employers with an annual tax liability of $1,000 or less.

For more information, refer to Module 7, Lesson 4

When correcting Form 941, Line 2, Wages, tips, and other compensation, file Form:

  1. 843.
  2. 941-X. Correct Answer
  3. 943.
  4. 944.

***

If an employer sells or transfers its business, Form 941 must be filed by both the previous and current owners for the quarter during which the sale took place. Each employer must report only the wages it paid and taxes it withheld. This expedites the due date of Forms W-2 to SSA by the due date of your final Form 941.

For more information, refer to Module 7, Lesson 2

If an employer goes out of business on May 27, completion of Part 3 of Form 941 is required with the final date wages were paid. This action also expedites the date the Forms W-2 are due to SSA to:

  1. the end of the first month following the quarter the business closed.
  2. the end of the second month following the quarter the business closed.
  3. the due date of the final Form 941. – Correct Answer
  4. the normal due date of Forms W-2 for the year the business closed.

 

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