Exam 6: Employer Payroll Taxes and Labor Planning

Which of the following items is always the employer's sole responsibility?

John works for Heinlein Hillclimbers in Wyoming, where he earns $26,500 annually. He contributes $150 per month to his 401(k), of which his employer matches half of his contribution. Heinlein Hillclimbers contributes $150 per month to his health insurance, $30 per month to his life insurance, and $50 per month to his AD&D policy. He receives a 2% profit-sharing bonus at the end of each year and $5,250 in tuition reimbursement. Heinlein pays employer-only taxes and insurance that comprises an additional 18% of John's annual salary. What is John's total annual compensation?

Deschutes Companies located in Oregon has a SUTA tax rate of 4.10% and a wage base of $36,900. During the last calendar year, the company paid $393,750 in wages and salaries for 11 employees. What is the total of the FUTA and SUTA tax liabilities for Deschutes Companies? (Assume that all employees have exceeded the FUTA and SUTA wage bases.)

Anadama Painters has 15 employees and is located in South Dakota. The total wages for the last year was $389,458. What was the FUTA tax liability for the year? (Assume that all employees have exceeded the annual FUTA wage base of $7,000 per employee and that the FUTA rate is 0.6%.)

Trick's Costumes has 65 employees, who are distributed as follows: The payroll-related costs for the year are $1,043,050. If Trick's Costumes does use departmental classification, how much is allocated to the Purchasing department? (Do not round intermediate calculations. Round final answer to 2 decimal places.)

Johnny's Tavern had 16 employees and total annual wages of $376,948 during the previous year. All employees earned more than $7,000 during the year. What is Johnny's Tavern's FUTA tax liability?

Maeisha works for Brown Corporation, where she earns $45,000. Her employer contributes 1% of her pay to her pension fund and pays the following monthly amounts for her insurance: health, $300; life, $50; AD&D, $25. She receives $40 per month for her gym membership and receives a $400 bonus at the end of the year. Brown Corporation pays employer-only taxes and insurance that comprises an additional 12% of Maeisha's annual salary. What is Maeisha's total annual compensation?

What deposit schedule must all new employers follow (unless their payroll tax liability exceeds $100,000 on any pay date)?

Trick's Costumes has 65 employees, who are distributed as follows: The payroll-related costs for the year are $1,043,050. If Trick's Costumes does use departmental classification, how much is allocated to the Fabrication department? (Do not round intermediate calculations. Round final answer to 2 decimal places.)

Cralic Company has 12 employees and operates in Texas. The Form 940 for the previous year contained the following information: What amount should be entered on line 5? (Assume that all employees had exceeded the FUTA wage base.)

Van Oot's Bicycles had $19,489 of payroll tax liability during their lookback period. They pay their employees on a semimonthly basis. Assuming that no payday has a tax liability in excess of $100,000, when is their payroll tax deposit due?

The time period that the IRS uses to determine a firm's payroll tax deposit schedule is called the:

Jeremiah is a full-time exempt employee who earns an annual salary of $215,000. What is the employer's annual FICA tax responsibility for Jeremiah's salary, based on an annual Social Security tax wage base of $127,200?

Schedule B must accompany Form 941 for a firm classified as a semi-weekly payroll tax depositor.

Francesca earns $2,400 per pay period. Compute the FICA taxes for both employee and employer share. What is the total FICA tax liability for Francesca's pay per pay period? (Assume that Francesca has not met the FICA wage base.)

Kohlmeier Industries had $87,950 of annual payroll taxes during the lookback period. The firm pays its employees biweekly on Wednesdays. Assuming that no payday has a tax liability in excess of $100,000, when are the payroll tax deposits due?

Leah works for Toffolon Technicians in New Hampshire, where she earns $30,000 annually. She contributes 3% to her 401(k), of which her employer matches 1.5%. Her employer contributes $200 per month for her health insurance, $50 per month for her life insurance, and $25 per month for her AD&D insurance. Toffolon Technicians pays employer-only taxes and insurance that comprises an additional 15% of Leah's annual salary. What is Leah's total annual compensation?

Patalano's Pros is a semi-weekly schedule depositor. Which forms must they file to reconcile their payroll taxes?

Van Buuren Enterprises had payroll tax liability of $42,450 during the lookback period. How frequently will the firm deposit its payroll taxes?

Collin's Pool Service files a Form 944 to report its payroll tax liability. Line 5 had a total of $2,648.96. Line 13m in Part 2 reported wages of $2,649.00. What needs to be done to reconcile the two amounts?