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Payroll Tax

Payroll Tax Quiz: Test Your Knowledge on Payroll Deductions and Withholdings

15 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

Which of the following is not a payroll tax in the United States?

  1. Social Security tax
  2. Medicare tax
  3. Federal income tax
  4. State income tax
Question 2 Multiple Choice (Single Answer)

What is the maximum amount of Social Security tax that can be withheld from an employee's paycheck in a year?

  1. $142,800
  2. $128,400
  3. $118,500
  4. $106,800
Question 3 Multiple Choice (Single Answer)

What is the maximum amount of Medicare tax that can be withheld from an employee's paycheck in a year?

  1. $2,900
  2. $2,700
  3. $2,500
  4. $2,300
Question 4 Multiple Choice (Single Answer)

Which of the following is not a common type of payroll deduction?

  1. Health insurance
  2. 401(k) contributions
  3. Dental insurance
  4. Unemployment insurance
Question 5 Multiple Choice (Single Answer)

What is the purpose of Form W-4?

  1. To calculate an employee's federal income tax withholding
  2. To calculate an employee's Social Security tax withholding
  3. To calculate an employee's Medicare tax withholding
  4. To calculate an employee's state income tax withholding
Question 6 Multiple Choice (Single Answer)

What is the purpose of Form W-2?

  1. To report an employee's wages and withholdings to the IRS
  2. To report an employee's wages and withholdings to the Social Security Administration
  3. To report an employee's wages and withholdings to the Medicare agency
  4. To report an employee's wages and withholdings to the state tax agency
Question 7 Multiple Choice (Single Answer)

What is the deadline for filing Form W-2?

  1. January 31
  2. February 28
  3. March 31
  4. April 15
Question 8 Multiple Choice (Single Answer)

What is the penalty for failing to file Form W-2 on time?

  1. $50 per day
  2. $100 per day
  3. $200 per day
  4. $300 per day
Question 9 Multiple Choice (Single Answer)

Which of the following is not a responsibility of an employer with respect to payroll taxes?

  1. Withholding payroll taxes from employees' paychecks
  2. Depositing payroll taxes with the IRS
  3. Filing payroll tax returns with the IRS
  4. Paying payroll taxes to the IRS
Question 10 Multiple Choice (Single Answer)

What is the purpose of the Federal Insurance Contributions Act (FICA)?

  1. To fund Social Security and Medicare benefits
  2. To fund unemployment benefits
  3. To fund workers' compensation benefits
  4. To fund health insurance benefits
Question 11 Multiple Choice (Single Answer)

What is the combined rate of Social Security and Medicare taxes?

  1. 6.2%
  2. 7.65%
  3. 9.35%
  4. 12.4%
Question 12 Multiple Choice (Single Answer)

Which of the following is not a type of payroll tax holiday?

  1. Social Security tax holiday
  2. Medicare tax holiday
  3. Federal income tax holiday
  4. State income tax holiday
Question 13 Multiple Choice (Single Answer)

What is the purpose of a payroll tax credit?

  1. To reduce an employer's payroll tax liability
  2. To increase an employer's payroll tax liability
  3. To reduce an employee's payroll tax liability
  4. To increase an employee's payroll tax liability
Question 14 Multiple Choice (Single Answer)

Which of the following is not a common type of payroll tax credit?

  1. Work opportunity tax credit
  2. Earned income tax credit
  3. Child tax credit
  4. Research and development tax credit
Question 15 Multiple Choice (Single Answer)

What is the purpose of Form 941?

  1. To report an employer's quarterly payroll tax liability
  2. To report an employee's annual wages and withholdings
  3. To report an employer's annual payroll tax liability
  4. To report an employee's quarterly wages and withholdings
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