Exam 8: Paying,recording,and Reporting Payroll and Payroll Taxes:

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2) Employee Name Pay Rate Hours Cumulative Department Federal Income Worked Tax Withheld B. Woodard \ 2,000/ wk Salaried \ 98,000 Office \ 779.00 J. Thomas 13.00 51 40,000 Shop 320.00 K. McCann 17.00 46 42,000 Shop 330.00 Assume: FICA-OASDI is 6.2% based on a limit of $117,000. FICA-Medicare is 1.45%. FUTA is .8% based on a limit of $7,000. SUTA is 5.6% based on a limit of $7,000. State income tax is 2.8%. -Compute the employees' FICA-Medicare.

A deposit must be made when filing the W-2 form.

When a business starts,what must it obtain that identifies itself to the government?

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2) Employee Name Pay Rate Hours Cumulative Department Federal Income Worked Tax Withheld B. Woodard \ 2,000/ wk Salaried \ 98,000 Office \ 779.00 J. Thomas 13.00 51 40,000 Shop 320.00 K. McCann 17.00 46 42,000 Shop 330.00 Assume: FICA-OASDI is 6.2% based on a limit of $117,000. FICA-Medicare is 1.45%. FUTA is .8% based on a limit of $7,000. SUTA is 5.6% based on a limit of $7,000. State income tax is 2.8%. -Compute the net pay for the employees' paychecks.

Which form is used to report FICA taxes for the employer and employee,and also federal income taxes for the employee?

An employer must always use a calendar year for payroll purposes.

Form 941 is filed:

The employer pays the same amount as the employee for Federal Unemployment taxes.

Plymouth Sharks Hockey Accessories had the following transactions involving the sale of merchandise.You are to prepare the necessary general journal entries.All sales are subject to a 6% sales tax and have a 2/10,n/30 discount terms. December 2 $\quad$ Sold merchandise priced at $\$ 100$ to Cathy Norton on account. December 4 $\quad$ Sold merchandise priced at $\$ 125$ to a cash customer. Decem ber 10 $\quad$ Payment from Cathy Norton received. Decem ber 16 $\quad$ Cash customer returned $\$ 40$ worth of merchandise. -The Wages and Salaries Expense account would be used to record:

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2) Employee Name Pay Rate Hours Cumulative Department Federal Income Worked Tax Withheld B. Woodard \ 2,000/ wk Salaried \ 98,000 Office \ 779.00 J. Thomas 13.00 51 40,000 Shop 320.00 K. McCann 17.00 46 42,000 Shop 330.00 Assume: FICA-OASDI is 6.2% based on a limit of $117,000. FICA-Medicare is 1.45%. FUTA is .8% based on a limit of $7,000. SUTA is 5.6% based on a limit of $7,000. State income tax is 2.8%. -Compute the total deductions for the employees' paychecks.

Jefferson Tutoring had the following payroll information on February 28: Employee Gross Pay Cumulative Earnings Prior to this Payroll R Hitchcock \ 4,000 \ 4,000 Assume: FICA tax rates are: OASDI 6.2% on a limit of $117,000 and Medicare 1.45%. State Unemployment tax rate is 2% on the first $7,000. Federal Unemployment tax rate is 0.8% on the first $7,000. Using the information above,the journal entry to record the payroll tax expense for Jefferson Tutoring would include:

FICA taxes are levied only on employees and employers.

Grammy's Bakery had the following information for the pay period ending June 30: Employee Name Pay rate Hours worked Cumulative earnings Department Federal income tax withheld P. Ganster \ 2,000 Salaried \ 12,000 Kitchen \ 86.00 T. Baker 10.00/ 50 6,500 Office 22.00 Assume: FICA-OASDI applied to the first $117,000 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Given the above information,what would be the amount applied to FUTA Payable?

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2) Employee Name Pay Rate Hours Cumulative Department Federal Income Worked Tax Withheld B. Woodard \ 2,000/ wk Salaried \ 98,000 Office \ 779.00 J. Thomas 13.00 51 40,000 Shop 320.00 K. McCann 17.00 46 42,000 Shop 330.00 Assume: FICA-OASDI is 6.2% based on a limit of $117,000. FICA-Medicare is 1.45%. FUTA is .8% based on a limit of $7,000. SUTA is 5.6% based on a limit of $7,000. State income tax is 2.8%. -Compute the total federal income tax.

Kristi's Mentoring had the following information for the pay period ending September 30: Assume: FICA-OASDI applied to the first $117,000 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings. -Compute the total retirement.

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2) Employee Name Pay Rate Hours Cumulative Department Federal Income Worked Tax Withheld B. Woodard \ 2,000/ wk Salaried \ 98,000 Office \ 779.00 J. Thomas 13.00 51 40,000 Shop 320.00 K. McCann 17.00 46 42,000 Shop 330.00 Assume: FICA-OASDI is 6.2% based on a limit of $117,000. FICA-Medicare is 1.45%. FUTA is .8% based on a limit of $7,000. SUTA is 5.6% based on a limit of $7,000. State income tax is 2.8%. -Compute the total gross earnings.

The W-2 is the Wage and Tax Statement.

If an employer owes less than $2,500 for FICA (OASDI and Medicare)and FIT,they can submit:

Which of the following statements is true?

Kristi's Mentoring had the following information for the pay period ending September 30: Assume: FICA-OASDI applied to the first $117,000 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings. - Column 1 Column 2 Column 3 Column 4 Cash-Payroll Checking