Mastering TOEIC Reading: Tax Documents for Employees Practice Test

TOEIC Reading comprehension skills are essential for understanding complex workplace documents, including tax-related materials for employees. This practice test focuses on reading tax documents, a common topic in many professional settings. Let’s dive into some sample questions to help you improve your TOEIC Reading abilities.

interpreting guidelines for employee onboarding

Part 1: Incomplete Sentences

In this section, you’ll find 30 incomplete sentences. Choose the word or phrase that best completes each sentence.

1. The company’s tax __ for employees is outlined in the employee handbook.
   A) policy
   B) policing
   C) polite
   D) politician

2. Employees must submit their tax __ forms by April 15th each year.
   A) return
   B) refund
   C) rebate
   D) receipt

3. The HR department will provide guidance on how to __ your tax withholdings.
   A) adjust
   B) adhere
   C) advance
   D) advise

4. All new hires are required to complete a W-4 form to determine their tax __.
   A) bracket
   B) break
   C) burden
   D) benefit

5. The company offers a tax-__ savings plan for retirement.
   A) deferred
   B) deficient
   C) definite
   D) defective

6. Employees should keep their pay stubs as __ of income for tax purposes.
   A) proof
   B) prove
   C) proven
   D) proofing

7. The finance team will issue tax __ statements by January 31st.
   A) withholding
   B) withdrawing
   C) withstanding
   D) witnessing

8. It’s important to report any changes in your __ status to HR promptly.
   A) marital
   B) martial
   C) marine
   D) marginal

9. The company’s __ contributions to your 401(k) are tax-deductible.
   A) matching
   B) matched
   C) matcher
   D) matches

10. Employees working remotely in different states may face __ tax situations.
    A) complex
    B) complicit
    C) compliant
    D) complete

11. The annual tax seminar will __ employees on recent changes in tax laws.
    A) update
    B) upgrade
    C) uphold
    D) uplift

12. Failure to comply with tax regulations may result in __ from your paycheck.
    A) deductions
    B) deducts
    C) deduce
    D) deductive

13. The company provides a __ service to assist employees with tax preparation.
    A) discounted
    B) discount
    C) discounting
    D) discounter

14. Employees should consult a tax __ for personalized advice on their tax situation.
    A) professional
    B) professor
    C) proficient
    D) profile

15. The HR portal contains a __ of frequently asked questions about employee taxes.
    A) section
    B) sector
    C) seclude
    D) secure

16. All __ income, including bonuses and commissions, is subject to taxation.
    A) taxable
    B) taxing
    C) taxed
    D) taxation

17. The company’s tax identification number is __ on all official tax documents.
    A) listed
    B) listened
    C) littered
    D) lifted

18. Employees are encouraged to review their tax __ throughout the year.
    A) withholdings
    B) withdrawals
    C) withholds
    D) withheld

19. The deadline for submitting expense reports for tax __ is December 15th.
    A) purposes
    B) proposals
    C) proposes
    D) properties

20. International employees may be subject to different tax __ depending on their home country.
    A) treaties
    B) treats
    C) treatment
    D) treating

21. The company’s __ benefits package includes several tax-advantaged options.
    A) comprehensive
    B) comprehension
    C) comprehend
    D) comprehending

22. Employees should keep records of any __ expenses that may be tax-deductible.
    A) work-related
    B) work-relating
    C) work-relation
    D) work-relative

23. The tax implications of stock options can be __ and may require professional advice.
    A) complicated
    B) complicating
    C) complication
    D) complicate

24. The company’s __ to sustainable practices may result in certain tax credits.
    A) commitment
    B) committing
    C) committed
    D) committee

25. Employees participating in the company’s charity __ program may be eligible for tax deductions.
    A) matching
    B) matched
    C) matcher
    D) matches

26. The __ of your tax return may affect your eligibility for certain company benefits.
    A) accuracy
    B) accurate
    C) accurately
    D) accurating

27. The company will provide a __ of your annual earnings for tax filing purposes.
    A) summary
    B) summarize
    C) summarized
    D) summarizing

28. Employees should be aware of the tax __ associated with any relocation benefits.
    A) implications
    B) implicates
    C) implicated
    D) implicating

29. The company’s tax __ team is available to answer general questions about employee tax matters.
    A) compliance
    B) compliant
    C) complying
    D) complied

30. Any __ in reporting your taxes may result in penalties from the IRS.
    A) discrepancies
    B) discrepant
    C) discredit
    D) discretion

reading employee travel policies

Part 2: Text Completion

In this section, you’ll find 4 short texts with 4 blanks each. Choose the best word or phrase to fill in each blank.

Text 1

Employee tax documents are essential for maintaining (1)__ financial records. The HR department is responsible for (2)__ all necessary tax forms to employees in a timely manner. These forms include W-2 statements, which (3)__ an employee’s annual wages and the amount of taxes withheld from their paycheck. It’s crucial for employees to (4)__ these documents carefully and report any discrepancies to HR promptly.

1. A) accurate B) accurately C) accuracy D) accurating
2. A) providing B) provide C) provided D) provider
3. A) summary B) summarize C) summarized D) summarizing
4. A) review B) reviewing C) reviewed D) reviewer

Text 2

Understanding your tax (5)__ as an employee is crucial for financial planning. Many companies offer tax-advantaged benefits, such as 401(k) plans, which allow employees to (6)__ pre-tax dollars towards their retirement savings. Additionally, some employers provide health savings accounts (HSAs) that offer triple tax (7)__: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. Employees should (8)__ these options carefully to maximize their tax benefits.

5. A) obligations B) obliges C) obligated D) obligating
6. A) contribute B) contribution C) contributed D) contributing
7. A) advantages B) advantageous C) advantaged D) advantaging
8. A) consider B) considered C) considering D) considerate

Text 3

The Internal Revenue Service (IRS) requires employers to (9)__ certain tax information from their employees. This includes obtaining a completed W-4 form, which determines the amount of federal income tax to (10)__ from each paycheck. Employers must also (11)__ with state and local tax requirements, which may vary depending on the company’s location and the employee’s place of residence. Failure to (12)__ with these regulations can result in significant penalties for both the employer and the employee.

9. A) collect B) collection C) collected D) collecting
10. A) withhold B) withholding C) withheld D) withholder
11. A) comply B) complying C) complied D) compliance
12. A) adhere B) adherence C) adhered D) adhering

Text 4

Employees should be aware of potential tax (13)__ throughout the year. For instance, receiving a bonus or a significant salary increase may (14)__ an employee into a higher tax bracket. Similarly, selling company stock options can have complex tax implications. It’s advisable for employees to (15)__ with a tax professional or financial advisor to understand how these events might impact their overall tax situation. By staying informed and proactive, employees can better (16)__ their tax liabilities and avoid unexpected surprises during tax season.

13. A) events B) eventing C) evented D) eventual
14. A) push B) pushing C) pushed D) pushy
15. A) consult B) consulting C) consulted D) consultant
16. A) manage B) managing C) managed D) management

Employee reviewing tax documents for TOEIC Reading practice

Answer Key

Part 1: Incomplete Sentences

1. A) policy
2. A) return
3. A) adjust
4. A) bracket
5. A) deferred
6. A) proof
7. A) withholding
8. A) marital
9. A) matching
10. A) complex
11. A) update
12. A) deductions
13. A) discounted
14. A) professional
15. A) section
16. A) taxable
17. A) listed
18. A) withholdings
19. A) purposes
20. A) treaties
21. A) comprehensive
22. A) work-related
23. A) complicated
24. A) commitment
25. A) matching
26. A) accuracy
27. A) summary
28. A) implications
29. A) compliance
30. A) discrepancies

Part 2: Text Completion

Text 1:

1. A) accurate
2. A) providing
3. B) summarize
4. A) review

Text 2:
5. A) obligations
6. A) contribute
7. A) advantages
8. A) consider

Text 3:
9. A) collect
10. A) withhold
11. A) comply
12. A) adhere

Text 4:
13. A) events
14. A) push
15. A) consult
16. A) manage

This practice test covers various aspects of Reading Tax Documents For Employees, helping you prepare for the TOEIC Reading section. Remember to pay close attention to context clues and grammatical structures when answering these questions. Regular practice with similar materials will improve your ability to understand and interpret complex workplace documents, including those related to taxes and employee benefits.