10. Which of the following statements is true with regard to the reimbursement of employee business expense? A. Excess reimbursements of ordinary and necessary expenses are never subject to withholding. B. Provided that reimbursements are received by an employee under a plan which requires the employee to substantiate the expenses to his employer, the amounts are excluded from the definition of wages subject to withholding, without regard to whether the employee actually substantiates the expenditures. C. Reimbursements of ordinary and necessary expenses are subject to federal income tax withholding. D. Reimbursements received by an employee under a plan which contains a requirement to return excess amounts, and the employee does so on a timely basis, are excluded from the definition of wages subject to withholding. E. All of these choices are true.
Related questions
To maintain exempt status, an organization must do which of thefollowing:
A. Satisfy only an organizational test.
B. Satisfy only an operational test.
C. Satisfy both an organizational test and an operationaltest.
D. Satisfy a financial test.
E. Once exempt status is granted, it will continue regardless ofwhether the organizational test and the operational test aresatisfied.
In determining state taxable income, all of the following areadjustments to Federal income except:
| A. | A Federal net operating loss. | |
| B. | Federal income tax expense. | |
| C. | Dividends received from other U.S. corporations. | |
| D. | Wages paid to officers and executives. |
Under P.L. 86-272, which of the following transactions by itselfwould create nexus with a state?
| A. | Inspection by a sales employee of the customerâs inventory forspecific product lines. | |
| B. | Using an independent contractor who acts as a manufacturerâsrepresentative for the taxpayer through a sales office in thestate. | |
| C. | Executing a sales campaign, using an advertising agency actingas an independent contractor for the taxpayer. | |
| D. | Maintenance of inventory in the state by an independentcontractor under a consignment plan. |
In conducting multistate tax planning, the taxpayer should:
| A. | Review tax opportunities in light of their effect on the overallbusiness. | |
| B. | Exploit inconsistencies among the taxing statutes and formulasof the states. | |
| C. | Consider the tax effects of the plan after accounting for anynew compliance and administrative costs that it generates. | |
| D. | All of the above are true. |
For most taxpayers, which of the traditional apportionmentfactors yields the greatest opportunities for tax reduction?
| A. | Payroll. | |
| B. | Property. | |
| C. | Unitary. | |
| D. | Sales (gross receipts). |
1. If a taxpayer works for two separateemployers, how much in FUTA taxes is each employer responsible toremit in the name of the taxpayer? (Points : 1) Only the first employer isrequired to remit FUTA taxes on the wages earned from the firstjob.
Both employers must remit FUTAtaxes on the first $7,000 in wages they pay to the taxpayer.
The first employer remits 5.4%on the first $7,000 in wages while the second employer remits only.8% on the first $7,000 in wages to equal the 6.2% rate.
The first employer remits FUTAtax on the first $7,000 in wages and the second employer remitsFUTA tax on the next $7,000 in wages.
$500. $800. $1,000. |
Rollovers are permitted only inunusual circumstances. A tax-free rollover can be madefrom a traditional IRA to another traditional IRA. A tax-free rollover can be madefrom a traditional IRA to a Roth IRA. |
Qualified education expensesinclude required tuition, fees, books, supplies, and equipment atan eligible educational institution. Qualified expenses must bereduced by scholarships or other tax-free income. All of the above. |
$1,200. $1,260. $6,300. |
Employees who received over$85,000 compensation in the previous year. Employees who were in the top25% of employees based on compensation. None of the above. |
$1,400. $1,600. $1,650. |
Directly to the authorizeddepository on the same day the Form 941 is mailed. Directly to the InternalRevenue Service when they file Form 941. Directly only if they use theEFTPS form of payment before Form 941 is filed. |
$350 $825. $1,375 |
Federal withholdingtaxes. Unemployment taxes. All of the above. |
