1. You have a household employee if you hired someone to do
household work and that worker is your employee. The worker is your employee if
A. You
can control the work that is done.
B. You
can control how the work is done.
C.
The work is full time, you pay the worker on an hourly, daily, or weekly basis,
or by the job.
D.
Both A and B above.
2. You pay Helen Ayers to babysit your child and do light
housework three days per week in your home. Helen follows your specific
instructions in doing the house chores and babysitting duties. You provide all
that is needed for her to perform her duties. Helen is
A. Not
your household employee because her job is not really considered a job.
B. Not
your employee because you are not there at home to supervise her while she
babysits.
C.
Your household employee because you control what work to do and how to do the
work.
D.
Not your household worker because you don't control her work.
3. A worker who performs child care services for you in his or
her home is your household employee.
True
False
4. If only the worker can control how the work is done, the
worker is not your employee but is self-employed.
True
False
5. It is unlawful for you knowingly to hire or continue to employ
an alien who cannot legally work in the United States. When you hire a household
employee to work for you on a regular basis, you and the employee must complete
the U.S. Citizenship and Immigration Services (USCIS) Form I-9, Employment
Verification, no later than
A. The
first day of work.
B. The
first week of work.
C.
The first pay check.
D.
The first month.
6. If you have a household employee, you may need to withhold and
pay
A. Social Security taxes.
B.
Medicare taxes.
C.
Federal unemployment taxes.
D. All
of the above.
7. You figure Social Security and Medicare taxes on the Social
Security and Medicare wages you pay your employee. Count wages you pay to
___________ as Social Security and Medicare wages.
A.
Your spouse.
B.
Your child who is under the age of 21.
C.
Your parent who cares for your child and your child is under the age of 18 or
has a physical or mental condition and you are divorced, a widow or your
spouse is physically or mentally incapable of taking care of your children.
D.
None of the above.
8. When you hire a household employee you may need to
A.
Find out if the person can legally work in the United States.
B.
Find out if you have to pay state taxes.
C. Give your employee copies B, C, and 2 of Form W-2.
D.
Both A and B above.
9. When you pay your household employee you may need to
A.
Withhold Social Security, Medicare and federal income taxes.
B.
Decide how you will make tax payments and keep records.
C.
Make advance payments of the earned income credit.
D. Do
all of the above.
10. A transit pass includes any pass, token, fare card, voucher,
or similar item entitling a person to ride on a mass transit, such as a bus or
train. If you provide your employee transit passes to commute to your home
A.
Count the value of the transit passes as wages.
B. Do
not count the value of the transit passes as wages.
C.
Only count as wages up to $115 per month for 2008.
D.
None of the above.
11. If you prefer to pay your employee's Social Security and
Medicare taxes from your own funds, do not withhold them from your employee's
wages. The Social Security and Medicare taxes you pay to cover your employee's
share must be included in the employee's wages for income tax purposes. These
wages are counted as
A. Social security wages.
B. Medicare wages.
C. Federal unemployment (FUTA) wages.
D.
None of the above.
12. The federal unemployment tax is part of the federal and
state program under the Federal Unemployment Tax Act (FUTA) that pays
unemployment compensation to workers who lose their jobs.
True
False
13. You should withhold the employee's share of social
security and Medicare taxes if you expect to pay your household employee cash
wages in 2008 of
A. Any amount.
B. $900 or more.
C. $1,600 or more.
D.
$600 or more.
14. You can avoid owing tax with your return if you pay enough
tax during the year to cover your household employment taxes, as well as your
income tax. You can pay the additional tax by
A.
Asking your employer to withhold more federal income tax from your wages in
2009.
B.
Making estimated tax payments for 2008 to the IRS or increase your payment if
you already make estimated tax payments.
C.
Asking the payer of your pension or annuity to withhold more federal income tax
from your benefits.
D.
Any of the above.
15. When you file your 2008 federal income tax return in 2009,
make household employment tax payments by attaching
A. Schedule H (Form 1040) to your Form 1040.
B. Schedule C (Form 1040) to your Form 1040.
C. Schedule SE (Form 1040) to your Form 1040.
D.
All of the above.
16. Copy B of the 2008 Form W-2, Wage and Tax Statement, has a
statement about the EIC on the back. If you give your employee that copy by
February 2, 2009, you do not have to give the employee any other notice about
the EIC. If you do not give your employee Copy B of the Form W-2, your notice
about the EIC can be
A. A substitute Form W-2 with the same EIC information on the back.
B. Notice 797, Possible Federal Tax Refund Due to the earned income credit (EIC).
C. Your own written statement with the same wording as in Notice 797.
D.
Any of the above.
17. You must file certain forms to report your household
employee's wages and the federal employment taxes for the employee if you pay
A. Social security and Medicare wages.
B. FUTA wages.
C. Wages from which you withhold federal income tax.
D.
Any of the above.
18. You must include your employer identification number (EIN) on
the forms your file for your household employee. An EIN is a 9-digit number
issued by the IRS. If you don't have this number, you can use your SSN.
True
False
19.
If your household employee cares for
your dependent who is under age 13 or for your spouse or dependent who is not
capable of self-care, you may be able to take an income tax credit of up to 35%
of your expenses.
True
False
20. If you pay a household employee cash wages of less than
$1,600 in 2008, you do not have to report and pay social security and Medicare
taxes on that employee's 2008 wages.
True
False
