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The entry to record the payroll tax expense includes all of the following except


A) Federal Unemployment Tax Payable.
B) FICA Tax Payable.
C) Employees' Federal Income Tax Payable.
D) State Unemployment Tax Payable.
E) None of these are correct.

F) All of the above
G) None of the above

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Hardy Company has the following balances in its general ledger as of September 1 of this year: 1.FICA Taxes Payable (liability for August), $1,150.00 (employee and employer). 2.Employees' Federal Income Tax Payable (liability for August), $908.00. 3.Federal Unemployment Tax Payable (liability for July and August), $215.00. 4.State Unemployment Tax Payable (liability for July and August), $1,262.75. The company completed the following transactions involving the payroll during September and October: Hardy Company has the following balances in its general ledger as of September 1 of this year: 1.FICA Taxes Payable (liability for August), $1,150.00 (employee and employer). 2.Employees' Federal Income Tax Payable (liability for August), $908.00. 3.Federal Unemployment Tax Payable (liability for July and August), $215.00. 4.State Unemployment Tax Payable (liability for July and August), $1,262.75. The company completed the following transactions involving the payroll during September and October: Instructions: Record the transactions in the general journal, pages 41-42. Instructions: Record the transactions in the general journal, pages 41-42.

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Which of the following statements is true?


A) SUTA and FUTA Tax Rates are always the same
B) Payroll Tax Expense involves Federal Income Tax Withholding.
C) The FUTA wage taxable limit is $7,000
D) Withholding Federal Income Taxes is optional for the employer

E) B) and C)
F) B) and D)

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The FUTA tax is imposed on employees on the first $7,000 of annual earnings per employee.

A) True
B) False

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Compare and contrast payroll Forms 940 and 941.

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Compare: Payroll taxes for employer. Bot...

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FUTA is an abbreviation for Social Security taxes.

A) True
B) False

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Generally, employers are required to withhold from employees for


A) Medicare taxes.
B) excise taxes.
C) federal unemployment taxes.
D) sales taxes.
E) property taxes.

F) A) and C)
G) A) and B)

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Payroll tax expense represents the amount of taxes contributed by the


A) employee.
B) employer.
C) employee and employer combined.
D) employer plus gross pay.
E) employer plus the employee's net pay.

F) B) and E)
G) A) and C)

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Which of the following statement is true?


A) Payroll Tax Expense increases on the credit side of the account
B) FICA Medicare Payable increases with a credit
C) Federal Income Tax Withholding Payable decreases with a credit
D) Employee Payroll Taxes withheld are recorded in Payroll Tax Expense

E) A) and B)
F) A) and C)

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John Smith has cumulative yearly earnings of $24,700, counting his current pay period salary amount of $3,500. Assume the FICA tax rate is 6.2 percent for Social Security, with a limit of $113,700, and 1.45 percent for Medicare, applied to all earnings. The FUTA tax is 0.6 percent, with a limit of $7,000, and the SUTA tax is 5.4 percent, with a limit of $7,000. The employer's payroll tax expense entry will include a credit to


A) FICA Tax Payable for $217.00.
B) FICA Tax Payable for $267.75.
C) Federal Unemployment Tax Payable for $28.00.
D) State Unemployment Tax Payable for $189.00.
E) Federal Unemployment Tax Payable for $280.00.

F) C) and D)
G) B) and D)

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Rounding differences with the employee and employer amounts of FICA taxes are handled on the 941 report by:


A) Any differences are paid in or refunded as appropriate
B) Line 7 accommodates fraction differences, which accommodates rounding
C) When differences occur, the numbers are adjusted before the report to balance
D) None of the above

E) None of the above
F) A) and B)

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Which of the following statements is NOT true about Workers' Compensation Insurance.


A) Employers generally pay premiums in advance
B) Most states require employers to provide coverage
C) Employers normally pass along the cost of coverage to employees
D) Premium rates vary based on risk and claims

E) C) and D)
F) A) and B)

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Which of the following items is considered to be a cost of having an employee?


A) Federal unemployment
B) FICA Medicare
C) FICA Social Security
D) All of these
E) None of these

F) C) and D)
G) A) and B)

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Match the terms that follow with the correct definitions. Match the terms that follow with the correct definitions. -The source of information for the W-2 form -The source of information for the W-2 form

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If a tax payment is made, what is the effect on the FICA Taxes Payable Account?


A) Increase with a, CR
B) Increase with a, DR
C) Decrease with a DR
D) Decrease with a, CR

E) B) and D)
F) B) and C)

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All companies have to pay the federal unemployment insurance quarterly.

A) True
B) False

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Employers are required to pay FICA taxes higher in amount to the FICA taxes withheld than their employees.

A) True
B) False

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Match the terms that follow with the correct definitions. Match the terms that follow with the correct definitions. -Tax form that shows the employee's annual gross earnings and the taxes withheld -Tax form that shows the employee's annual gross earnings and the taxes withheld

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If the limit for Social Security (6.2%) is $113,700 and Medicare (1.45%) is applied to all earnings and Sally Reena's gross earnings this pay period are $7,300, with cumulative earnings prior to this pay period of $112,460, the amount of tax is


A) Social Security, $452.60; Medicare, $105.85.
B) Social Security, $0; Medicare, $0.
C) Social Security, $76.88; Medicare, $105.85.
D) Social Security, $0; Medicare, $17.98.
E) Social Security, $76.88; Medicare, $17.98.

F) A) and B)
G) A) and C)

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An employer's deposit of federal taxes includes


A) the employees' federal income taxes withheld.
B) the employees' share of FICA taxes withheld (Social Security and Medicare) .
C) the employer's share of FICA taxes (Social Security and Medicare) .
D) none of these.
E) all of these.

F) B) and E)
G) B) and D)

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Showing 41 - 60 of 104

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