1. Qualified differential wage payments made by employers to individuals serving in the Armed Forces after 2008 are subject to                                                                  

A. Income tax withholding.
B. Social Security and Medicare taxes.
C. Federal Unemployment Tax Act (FUTA) taxes.
D. All of the above.

2. When you hire a new employee, ask each new employee to                                                                 

A. Complete the 2011 Form W-4.
B. Show you his or her social security card for accuracy.
C. Both A and B above.
D. Bring you copies of a completed Form W-4 and copies of his or her social security card.

3. You are required to report any new employee to                                                                  

A. The county new employee division.
B. A designated state new-hire registry.
C. The IRS Office of New-Hires.
D. All of the above.

4. You must verify that each new employee is legally eligible to work in the United States. This includes completing   

A. The 2011 Form W-4.
B. A new Social Security card application.
C. The U.S. Citizenship and Immigration Services (USCIS) Form I-9.
D. All of the above.

5. You may be required to file information returns to report certain types of payments made during the year. For example, you must  file Form 1099-MISC, to report payments of                                                                  

A. $400 or more.
B. $600 or more.
C. $1,500 or more.
D. Any amount.

6. This is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.

A. The Taxpayer Advocate Service (TAS).    
B. The Enterprise Computing Center.
C. The Office of Child Support enforcement.
D. The National technical Information Service.

7. For any due date, you will meet the "file" or "furnish" requirement if the form is properly addressed and mailed First-Class or sent by an IRS-designated delivery service by the due date. You must do the following by January 31, except:         

A. File Form 943, Employer's Annual Federal Tax Reporting for Agricultural Employees.
B. Furnish each employee with a completed Form W-2, Wage and Tax Statement.
C. File Copy A of all paper Form W-2 with Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration (SSA).
D. All of the above.

8. As part of complying with the important dates and responsibilities as an Agricultural employer, by February 15, you should           

A. Furnish each recipient to whom you paid $600 or more in nonemployee compensation with a completed Form 1099.
B. File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax return.
C. File Form 945, Annual Return of Withheld Federal Income Tax, to report any nonpayroll federal income tax withheld.
D. Ask for a new Form W-4 or Formulario W-4 (SP) from each employee who claimed exemption from federal income tax withholding last year.

9. Generally, a worker who performs services for you is your employee if                           

A. You have the employee file an employment application and ask for the necessary employment documents.
B. You have the right to control what will be done and how it will be done.
C. You control what will be done with absolutely no freedom of action.
D. You decide to withhold and pay employment taxes for your employee.
 

10. In determining if your worker is your employee, what matters is that you have the right to control the details of how the services are performed.                      

True False

11. In general, you are an employer of farmworkers if your employees

A. Raise or harvest agricultural or horticultural products on your farm.
B. Provide services relating to salvaging timber, or clearing land of brush and other debris left by a hurricane.
C. Handle, process, or package any agricultural or horticultural commodity if you produced over half of the commodity.
D. Any of the above.

12. For tax years beginning after December 31, 2006, the small business and Work Opportunity Tax Act of 2007 provides that a "qualified joint venture", whose only members are a husband and a wife filing a joint income tax return, can elect not to be treated as a partnership for federal tax purposes. A qualified joint venture conducts a trade or business where                                                      

A. The only members of the joint venture are a husband and a wife who file a joint income tax return.
B. Both spouses materially participate in the trade or business.
C. Both spouses elect to not be treated as a partnership and the business is co-owned by both spouses.
D. All of the above.

13. To make the joint venture election, all items of income, gain, loss, deduction, and credit must be divided between the spouses, in accordance with each spouse's interest in the venture, and

A. Reported on separate Schedule C or F as sole proprietors.
B. File a separate Schedule SE to pay self-employment taxes.
C. Both A and B above.
D. Generally need to file for an EIN for federal tax purposes.

14. The following statement is true in making the husband and wife joint venture election.

A. Generally, filing as a qualified joint venture will increase the spouses' total tax owed on the joint income tax return.
B. Filing as a joint venture gives each spouse credit for social security earnings on which retirement benefits are based and for Medicare coverage.
C. If you and your spouse wholly own an unincorporated business as community property under the community property laws you cannot make the election to be taxed as a qualified joint venture instead of a partnership.
D. All of the above.

15. Cash wages that you pay to employees for farm work are generally subject to social security and Medicare taxes. If the wages are subject to social security and Medicare taxes, they are

A. Also subject to federal income tax withholding.
B. Also subject to FUTA tax withholding.
C. Both A and B above.
D. The total that you pay for farmwork to all your employees is $2,500 or more.
                 

16. The wages of an employee who performs household services, such as a maid, babysitter, gardener, or cook, in you home are not subject to social security and Medicare taxes if you pay that employee cash wages of less than

A. $600 in 2011.
B. $1,900 in 2011.
C. $1,700 in 2011.
D. $2,500 in 2011.

17. All cash wages you pay to an employee during the year for farmwork are subject to social security and Medicare taxes and federal income tax withholding if

A. You pay cash wages to an employee of $150 or more in a year for farmwork.
B. The total that you pay for farmwork to all your employees is $2,500 or more during the year.
C. Either A or B above.
D. The worker is employed is agriculture as a hand-harvest laborer.

18. Supplemental wages are compensation paid in addition to an employee's regular wages. They do not include payment for

A. Accumulated sick leave.
B. Nondeductible moving expenses.
C. Vacation pay.
D. Travel reimbursements paid at the Federal Government per diem rate.
 

19. IRS may assess an "averaged" failure-to-deposit penalty of _______ if you are a monthly schedule depositor and did not properly complete line 17 of Form 943 when your tax liability shown on Form 943 was $2,500 or more.   

A. 2% to 10%.
B. 25%.
C. 10%.
D. 5%.
 

20. If you employ both farm and nonfarm workers, you

A. Must combine for purposes of applying any of the deposit schedule rules.
B. Must treat-employment taxes for the farmworkers separately from employment taxes for the nonfarm workers.
C. Must make an election to treat your employees as farmworkers or nonfarmworkers depending on the majority of workers in each category.
D. None of the above