Question 1

Which of the following forms is submitted with a copy of the Form W-2 for each employee to the Social Security Administration?

Accepted Answer

A)  Form W-3 
B)  Form W-4 
C)  Form 940 
D)  Form 941 
A)  Form W-3 
B)  Form W-4 
C)  Form 940 
D)  Form 941

Question 2

Compute and record workers' compensation insurance premiums for Beverly Manufacturing as follows:
1.The firm estimates that its office employees will earn $40,000 next year and its factory employees will earn $172,000.The firm pays the following rates for workers' compensation insurance: $0.40 per $100 of wages for the office employees and $3.50 per $100 of wages for the factory employees.Compute the estimated premiums for 2016.On page 9 of a general journal,record the payment of the estimated premium.Date the entry January 12,2016.
2.On January 3,2017,an audit of the firm's payroll records for 2016 showed that the firm had actually paid wages of $48,000 to its office employees and $165,000 to its factory employees.Compute the actual premium for the year and the balance due the insurance company or the credit due the firm.In the general journal,record the entry to adjust the Workers' Compensation Insurance Expense as of the end of 2016.Date the entry December 31,2016.

Accepted Answer

The answer of Compute and record workers' compensation insurance premiums...

Question 3

The frequency of deposits of federal income taxes withheld and social security and Medicare taxes is determined by the amount owed.

Accepted Answer

A) True 
 B)False

Question 4

If at the end of the year the firm owes a balance for workers' compensation insurance,the adjusting entry includes a

Accepted Answer

A)  debit to Workers' Compensation Insurance Payable a credit to Workers' Compensation Insurance Expense. 
B)  a debit to Workers' Compensation Refund Receivable and a credit to Workers' Compensation Insurance Expense. 
C)  a debit to Workers' Compensation Insurance Expense and a credit to Workers' Compensation Insurance Payable. 
D)  a debit to Payroll Taxes Expense and a credit to cash. 
A)  debit to Workers' Compensation Insurance Payable a credit to Workers' Compensation Insurance Expense. 
B)  a debit to Workers' Compensation Refund Receivable and a credit to Workers' Compensation Insurance Expense. 
C)  a debit to Workers' Compensation Insurance Expense and a credit to Workers' Compensation Insurance Payable. 
D)  a debit to Payroll Taxes Expense and a credit to cash.

Question 5

The entry to record a payroll tax on the employer would include a debit to a(n)____________________ account.

Accepted Answer

The answer of The entry to record a payroll tax...

Question 6

Compute and record workers' compensation insurance premiums for Fairlawn Manufacturing as follows:
1.The firm estimates that its office employees will earn $46,000 next year and its factory employees will earn $162,000.The firm pays the following rates for workers' compensation insurance: $0.40 per $100 of wages for the office employees and $3.50 per $100 of wages for the factory employees.Compute the estimated premiums for 2016.On page 9 of a general journal,record the payment of the estimated premium.Date the entry January 12,2016.
2.On January 3,2017,an audit of the firm's payroll records for 2016 showed that the firm had actually paid wages of $48,000 to its office employees and $165,000 to its factory employees.Compute the actual premium for the year and the balance due the insurance company or the credit due the firm.In the general journal,record the entry to adjust the Workers' Compensation Insurance Expense as of the end of 2016.Date the entry December 31,2016.

Accepted Answer

The answer of Compute and record workers' compensation insurance premiums...

Question 7

To record a deposit of federal income taxes withheld and social security and Medicare taxes,the accountant would

Accepted Answer

A)  debit an expense account and credit one or more liability accounts. 
B)  debit an asset account and credit an expense account. 
C)  debit one or more liability accounts and credit an asset account. 
D)  debit one or more expense accounts and credit one or more liability accounts. 
A)  debit an expense account and credit one or more liability accounts. 
B)  debit an asset account and credit an expense account. 
C)  debit one or more liability accounts and credit an asset account. 
D)  debit one or more expense accounts and credit one or more liability accounts.

Question 8

Jackson Autos has one employee.As of March 30,their employee had already earned $6,300.For the pay period ending April 15,their employee earned an additional $4,000 of gross wages.Only the first $7,000 of annual earnings are subject to FUTA of .6% and SUTA of 5.4%.The journal entry to record the employer's unemployment payroll taxes for the period ending April 15,would be:

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 9

To record the payment of SUTA tax,the accountant would

Accepted Answer

A)  debit Payroll Taxes Expense and credit State Unemployment Tax Payable. 
B)  debit Payroll Taxes Expense and credit Cash. 
C)  debit Social Security Taxes Payable and credit Cash. 
D)  debit State Unemployment Tax Payable and credit Cash. 
A)  debit Payroll Taxes Expense and credit State Unemployment Tax Payable. 
B)  debit Payroll Taxes Expense and credit Cash. 
C)  debit Social Security Taxes Payable and credit Cash. 
D)  debit State Unemployment Tax Payable and credit Cash.

Question 10

At the end of each quarter,the individual earnings records are totaled.

Accepted Answer

A) True 
 B)False

Question 11

Generally,the base earnings subject to state unemployment taxes is

Accepted Answer

A)  smaller than the base for social security. 
B)  the same as the base for social security. 
C)  larger than the base for social security. 
D)  the amount of total earnings. 
A)  smaller than the base for social security. 
B)  the same as the base for social security. 
C)  larger than the base for social security. 
D)  the amount of total earnings.

Question 12

The unemployment compensation tax program is often called the unemployment insurance program.

Accepted Answer

A) True 
 B)False

Question 13

Roy DeSoto earns a regular hourly salary of $24.50.He is paid time-and-a-half for all hours in excess of 40 in the week.For the week ended March 8,2016,he worked a total of 50 hours.His gross wages year to date prior to his March 8 paycheck are $11,980.Social Security Tax is 6.2%,Medicare Tax is 1.45%,federal unemployment tax is .6% and state unemployment tax is 4.2%,both on a maximum of $7,000 of gross wages per year.What is the employer's payroll tax expense for Roy for the week ended March 8,2016?

Accepted Answer

A)  $154.96 
B)  $123.97 
C)  $170.47 
D)  $103.08 
A)  $154.96 
B)  $123.97 
C)  $170.47 
D)  $103.08

Question 14

For the purpose of internal control,only the person who prepares payroll checks should distribute them.

Accepted Answer

A) True 
 B)False

Question 15

Tax returns for the federal unemployment tax are due

Accepted Answer

A)  weekly. 
B)  monthly. 
C)  quarterly. 
D)  annually. 
A)  weekly. 
B)  monthly. 
C)  quarterly. 
D)  annually.

Question 16

ABC Consulting had two employees with the following earnings information:   Use the table above and calculate the employer payroll income taxes associated with Henry's December 15 paycheck given the following tax rates: Social Security tax of 6.2% is levied on the first $113,700 of annual wages and the Medicare tax rate is 1.45% on all earnings.State unemployment tax of 5.4% and federal unemployment tax of .6% are both levied on only the first $7,000 of each employee's annual earnings.

Accepted Answer

A)  $194.40 
B)  $306.00 
C)  $546.00 
D)  $842.00 
A)  $194.40 
B)  $306.00 
C)  $546.00 
D)  $842.00

Question 17

Which of the following statements is NOT correct?

Accepted Answer

A)  The accountant obtains information about wages subject to payroll taxes from the payroll register. 
B)  Most commercial banks are authorized to accept the employee's tax deposits for federal income taxes withheld and the employer's and employees' shares of social security taxes. 
C)  Payroll tax deposits can be made electronically or using a Federal Tax Deposit Coupon,Form 8109. 
D)  The "lookback period",in regard to payroll taxes,is defined as the previous month. 
A)  The accountant obtains information about wages subject to payroll taxes from the payroll register. 
B)  Most commercial banks are authorized to accept the employee's tax deposits for federal income taxes withheld and the employer's and employees' shares of social security taxes. 
C)  Payroll tax deposits can be made electronically or using a Federal Tax Deposit Coupon,Form 8109. 
D)  The "lookback period",in regard to payroll taxes,is defined as the previous month.

Question 18

The information for preparing Form W-2 is obtained from the employees' individual earnings records.

Accepted Answer

A) True 
 B)False

Question 19

Mr.Zee worked 48 hours during the week ended January 18,2016.He is paid $10 per hour,and is paid time and a half for all hours over 40 in a week.He had $100 withheld from his pay for federal income taxes,and $20 withheld for health insurance.The combined social security and Medicare tax rate is 7.65%,and the federal and state unemployment tax rates are .6% and 3.8%,respectively.All earnings are taxable.What is the total employer payroll tax expense for Mr.Zee's current paycheck.

Accepted Answer

A)  $62.66 
B)  $57.84 
C)  $82.66 
D)  $182.66 
A)  $62.66 
B)  $57.84 
C)  $82.66 
D)  $182.66

Question 20

A copy of the Form W-2 for each employee is submitted to the Social Security Administration along with

Accepted Answer

A)  Form 940. 
B)  Form 941. 
C)  Form 8109. 
D)  Form W-3. 
A)  Form 940. 
B)  Form 941. 
C)  Form 8109. 
D)  Form W-3.

Exam 11: Payroll Taxes, Deposits, and Reports

Which of the following forms is submitted with a copy of the Form W-2 for each employee to the Social Security Administration?

The frequency of deposits of federal income taxes withheld and social security and Medicare taxes is determined by the amount owed.

If at the end of the year the firm owes a balance for workers' compensation insurance,the adjusting entry includes a

The entry to record a payroll tax on the employer would include a debit to a(n)____________________ account.

To record a deposit of federal income taxes withheld and social security and Medicare taxes,the accountant would

To record the payment of SUTA tax,the accountant would

At the end of each quarter,the individual earnings records are totaled.

Generally,the base earnings subject to state unemployment taxes is

The unemployment compensation tax program is often called the unemployment insurance program.

For the purpose of internal control,only the person who prepares payroll checks should distribute them.

Tax returns for the federal unemployment tax are due

Which of the following statements is NOT correct?

The information for preparing Form W-2 is obtained from the employees' individual earnings records.

A copy of the Form W-2 for each employee is submitted to the Social Security Administration along with

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analyses

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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