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NASCLA Commercial General Building Contractor — Practice Exam

Procurement and contracting: payroll taxes: practice questions

Our NASCLA Commercial GC bank has 11 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1

Under the $100,000 next-day deposit rule, what must an employer do if it accumulates $100,000 of employment tax on any day?

  1. Pay it within 30 days
  2. Deposit it by the next business day
  3. Deposit it with the annual return
  4. Deposit it by the end of the quarter
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B. Deposit it by the next business day — The employer then becomes a semiweekly depositor (IRS Pub. 15).

Question 2

By when must employers give employees their Form W-2?

  1. By December 31 of the same year
  2. By April 15, when individual tax returns are due
  3. By January 31 of the following year
  4. By March 31
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C. By January 31 of the following year — Copies also go to the Social Security Administration by January 31.

Question 3

What is the employer's share of Medicare tax?

  1. 0.9% of all wages
  2. 1.45% of all wages
  3. 2.9% of wages over $200,000 only
  4. 6.2% up to the wage base
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B. 1.45% of all wages — Additional Medicare tax of 0.9% is withheld from employees only on wages over $200,000.

Question 4

How long should employers keep employment tax records, according to IRS Publication 15?

  1. At least 4 years
  2. At least 1 year
  3. Only until the return is filed
  4. At least 10 years
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A. At least 4 years — IRS Pub. 15, recordkeeping.

Question 5

Which form do most employers file quarterly to report federal income tax withheld and FICA?

  1. Form 1096
  2. Form 940
  3. Form W-2
  4. Form 941
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D. Form 941 — Form 940 is the annual FUTA return.

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