1- Which of the following amounts paid by an employer to an employee is not subject to withholding?a.Salaryb.Commissionsc.Bonusd.Travel expense reimbursements from an accountable plane.All of these choices are subject to withholding.2-For 2016, the maximum base for the Social Security portion of the FICA tax is:a.$117,000b.$118,500c.$87,900d.$84,000e.None of these choices are correct.3- Which of the following forms should be used by a company to report a payment of $1,500 to a computer consultant who is not an employee of the company?a.Form W-4b.Form 1099-MISCc.Form 1099-INTd.Form 1099-DIVe.Form W-24- Which of the following items may be subject to the self-employment tax?a.Capital gainsb.A partner’s distributive share of partnership incomec.Dividend incomed.Interest incomee.None of these choices are correct.5- Oliver has two employees who earned the following amounts during 2016:June$17,000Eric$ 5,000If Oliver timely pays 5.4 percent for state unemployment tax, what is the amount of his 2016 FUTA after the state tax credit?a.$112b.$176c.$72d.$0e.None of these choices are correct.6- For 2016, the Social Security portion of the FICA tax is imposed at a rate of:a.6.2 percent for only the employee.b.6.2 percent for the employee and 7.65 percent for the employer.c.6.2 percent for the employee and 6.2 percent for the employer.d.6.2 percent for only the employer.e.None of these choices are correct.7- Peter and Joan are married and Joan has self-employment income of $240,000. Peter is retired. How much additional 0.9% Medicare surtax will Peter and Joan owe with their 2016 income tax return?a.$360b.$0c.$2,160d.They will receive a $90 refund.8- What percentage of gross food and beverage sales is used in determining the amount of tips that an employer must report as allocated to employees?a.10 percentb.12 percentc.15 percentd.8 percente.None of these choices are correct.9- Household employers are not required to pay FICA taxes on cash payments of less than $2,000 paid to any household employee in a calendar year.TrueFalse