Certified Payroll Professional Practice Exam

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Prepare for the Certified Payroll Professional Exam with comprehensive flashcards and multiple choice questions. Each question is accompanied by detailed hints and explanations to aid your understanding. Get ready to ace your Certified Payroll Professional Exam!

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Which form is used to report distributions from retirement plans, annuities, and insurance contracts?

Form SS-8
Form 1096
Form 1042
Form 1099-R

The correct answer is: Form 1099-R

Form 1099-R is used to report distributions from retirement plans, annuities, and insurance contracts. This form is issued by the payer of the distribution and must also be provided to the recipient of the distribution. Form 1099-R shows the gross distribution, taxable amount, federal income tax withheld, and any exceptions to the penalty tax for early withdrawal. The other options are incorrect because: A. Form SS-8 is used to request a determination of a worker's status for purposes of federal employment taxes and income tax withholding. B. Form 1096 is used to summarize and transmit paper forms 1099, 1098, 5498, and W-2G to the IRS. C. Form 1042 is used to report tax withheld on certain income of foreign persons, including nonresident aliens, foreign partnerships, foreign corporations, foreign estates, and foreign trusts.