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

S.Ferrari,an employee of Plum Hollow Country Club,earned $1,100 during the first week of January.His withholding included: federal income tax,15%;state income tax,5%;FICA-OASDI,6.2%;FICA-Medicare,1.45%;and union dues $25.Determine the tax for OASDI,Medicare,Federal Income Tax,and State Income Tax.

Wages and Salaries Expense is:

The account for Payroll Tax Expense includes all of the following except:

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 gross earnings for the tutors.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 FICA-OASDI Payable

What is debited if State Unemployment Tax Payable (SUTA)is credited?

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. -Prepare the general journal entry to record the payment of the retirement fund withholdings. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

The look-back period is used to determine whether:

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 state income tax.

The entry to record the payroll tax expense would include:

Grammy's Bakery had the following information before the pay period ending June 30: Employee Name Pay rate Hours worked Cumulative earnings Department Federal income tax withheld P. Ganster \ 3,000 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 Kitchen Salaries Expense?

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%. -The correct journal entry to record the payment of FUTA is to:

FIT Payable has a credit normal balance.

The entry to record the payment of taxes withheld from employees and FICA taxes would be to:

Form 940 is used by businesses that employ workers in multiple states.

Which taxes are considered 941 taxes?

Mid-West Tutoring had the following payroll information on January 31: Employee Gross Pay Cumulative Earnings Prior to this Payroll R Baxter \ 6,000 \ 6,000 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 employee's withholding taxes would include:

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 employees' FICA-Medicare.

If Wages and Salaries Payable is debited,what account would most likely be credited?

Using the information below,determine the amount of the payroll tax expense for B.Hope Company's first payroll of the year.In your answer list the amounts for FICA (OASDI and Medicare),SUTA,and FUTA. Employee Taxable Earnings K. Wilson \ 600 K. James 520 T. Paulsen 300 Assume: FICA tax rates are: OASDI 6.2% on a limit of $117,000 and Medicare 1.45%. State Unemployment tax rate is 5.0% on the first $7,000. Federal Unemployment tax rate is 0.8% on the first $7,000.