Exam 6: Employer Payroll Taxes and Labor Planning

Jamie earns $232,000 annually. Compute the FICA taxes for both the employee and employer share. The Social Security wage base is $127,200. What is the total annual FICA tax liability for Jamie's pay?

Annabelle is employed as an administrator for GRM Industries. She noticed that her Box 1 and Box 3 amounts on her W-2 were different. What is a reason why the amounts in boxes 1 and 3 would be different?

Which of the following documents could contain annual compensation report data? (Select all that apply.)

Collin's Pool Service files a Form 944 to report its payroll tax liability. Line 5 had a total of $2,648.96. Part 2 contained the following information: What amount belongs in box 13m?

An employer files Form 941 on either a quarterly basis or when they deposit payroll taxes, whichever is more frequent.

The payroll tax(es) for which an employer must match the entire amount of the employee's deduction include ________.

Mandatory employer-paid payroll taxes are known as statutory deductions.

FUTA tax rates vary from state to state.

If an employer fails to make payroll tax deposits on time, the firm will be penalized if the IRS finds evidence of ________.

Concrete Works is a California company with a SUTA tax of 5.2% and a SUTA wage base of $7,000. The employee earnings for the past year are: T. Borek $17,875, G. Hizny $2,250, A. McBean $18,550, C. Triebert $6,950. California, employers pay an Employment Training Tax (ETT) of 0.1% on all wages up to the first $7,000 of wages. What are the employer-share taxes for FUTA, SUTA, ETT(.1%), and FICA for the year? (ignore worker's compensation insurance)

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 Sales department? (Do not round intermediate calculations. Round final answer to 2 decimal places.)

Hodgdon Industries, a semi-weekly schedule depositor, pays its employees semimonthly on the 1^st and 15^th of the month. Per company policy, employees are paid their annual bonuses on December 14, the final payday of the year for 2017. On Thursday, December 14, the bonuses were paid and the payroll tax liability was $103,850. When are the payroll tax deposits due for the December 14 pay date?

Andreosatos Enterprises has received a letter from the IRS that due to their tax liability of $1,950 during the lookback period, they are an annual depositor. Which tax form should they file to report their payroll taxes?

________ allows firms to allocate costs accurately among departments.

The IRS uses the ________ to determine how often a company must deposit payroll taxes.

Cordelia is an employee of Snaktyme Foods in Missouri. She earns $24,000 annually. Snaktyme has provided uniforms worth $350 and training worth $850 as part of her employment. She contributes 4% to her 401(k), of which her employer matches half. Cordelia's employer pays the following monthly amounts toward her insurance: health, $125; life, $50; AD&D, $30. Snaktyme Foods pays employer-only taxes and insurance that comprises an additional 14% of Cordelia's annual salary. What is Cordelia's total annual compensation?

A firm that had $55,650 in annual payroll tax liability during the lookback period will be a monthly schedule depositor.

Payroll taxes for which the employer is responsible for paying a percent of employee compensation include FICA taxes, federal income tax, and FUTA tax.

Which of the following is not an example of an employer's payroll-related business expense?

PCD Inc. operates as a Nevada business. The SUTA wage base for Nevada is $28,200. PCD Inc.'s SUTA tax rate is 4.5%. The employees' annual earnings for the past calendar year are as follows: Annabelle $36,750, Beatrice $24,880, Michael $42,200, Howard $26,500. What is PCD Inc.'s SUTA tax liability for the year?