Question 1

The date by which federal income tax withholding, Social Security, and Medicare taxes must be paid depends on the amount of these taxes.

Accepted Answer

A) True 
 B)False

Question 2

The adjustment to journalize an additional premium due at the end of the year for workers' compensation insurance (WCI) is

Accepted Answer

A)  debit WCI Expense and credit Cash. 
B)  debit WCI Expense and credit Insurance Refund. 
C)  debit WCI Expense and credit WCI Payable. 
D)  debit Insurance Payable and credit WCI Payable. 
A)  debit WCI Expense and credit Cash. 
B)  debit WCI Expense and credit Insurance Refund. 
C)  debit WCI Expense and credit WCI Payable. 
D)  debit Insurance Payable and credit WCI Payable.

Question 3

Employer payroll taxes clearly are an insignificant cost of doing business.

Accepted Answer

A) True 
 B)False

Question 4

In general, the larger the amount of Social Security and Medicare taxes due from an employer, the more frequently payments must be made.

Accepted Answer

A) True 
 B)False

Question 5

The federal unemployment tax is levied on

Accepted Answer

A)  employers and is not deducted from employees' earnings. 
B)  employees and is deducted from customer payments. 
C)  employers and is deducted from employees' earnings. 
D)  employees and employers. 
A)  employers and is not deducted from employees' earnings. 
B)  employees and is deducted from customer payments. 
C)  employers and is deducted from employees' earnings. 
D)  employees and employers.

Question 6

Form 940 is called the Employer's Quarterly Federal Tax Return.

Accepted Answer

A) True 
 B)False

Question 7

Match the terms with the definitions.
-Employer's Annual Federal Unemployment Tax Return

Accepted Answer

A) Electronic Federal Tax Payment System (EFTPS) 
B) employer FICA taxes 
C) Employer Identification Number (EIN) 
D) Form W-2 
E) Form W-3
F)Form 940
G)Form 941
H)FUTA (Federal Unemployment Tax Act) tax
I)merit-rating system
J)self-employment income
K)self-employment tax
L)SUTA (state unemployment tax) tax
M)workers' compensation insurance 
A) Electronic Federal Tax Payment System (EFTPS) 
B) employer FICA taxes 
C) Employer Identification Number (EIN) 
D) Form W-2 
E) Form W-3
F)Form 940
G)Form 941
H)FUTA (Federal Unemployment Tax Act) tax
I)merit-rating system
J)self-employment income
K)self-employment tax
L)SUTA (state unemployment tax) tax
M)workers' compensation insurance

Question 8

The cost of workers' compensation insurance to a construction company with 15 employees would likely be higher than the cost of insurance to a small candy company with 15 employees.

Accepted Answer

A) True 
 B)False

Question 9

An Employer Identification Number (EIN) is obtained by the employer from the

Accepted Answer

A)  nearest Federal Reserve Bank. 
B)  CIA. 
C)  Internal Revenue Service. 
D)  nearest local federally insured bank. 
A)  nearest Federal Reserve Bank. 
B)  CIA. 
C)  Internal Revenue Service. 
D)  nearest local federally insured bank.

Question 10

Employers are allowed a credit against the FUTA tax for participation in state unemployment programs.

Accepted Answer

A) True 
 B)False

Question 11

The payroll register is a key source of information for computing employer payroll taxes.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is a payroll tax normally paid by both the employee and the employer?

Accepted Answer

A)  Medicare tax 
B)  FUTA tax 
C)  property tax 
D)  SUTA tax 
A)  Medicare tax 
B)  FUTA tax 
C)  property tax 
D)  SUTA tax

Question 13

Which of the following tax programs often has a merit-rating system to encourage employers to provide regular employment for workers?

Accepted Answer

A)  FICA 
B)  FUTA 
C)  SUTA 
D)  workers' compensation insurance 
A)  FICA 
B)  FUTA 
C)  SUTA 
D)  workers' compensation insurance

Question 14

Employers who have less than $2,500 due in federal income tax withholding and Social Security and Medicare taxes at the end of the quarter should journalize the debt and pay at the end of the

Accepted Answer

A)  year. 
B)  quarter. 
C)  month following the end of the quarter. 
D)  next banking day. 
A)  year. 
B)  quarter. 
C)  month following the end of the quarter. 
D)  next banking day.

Question 15

Social Security, Medicare, FUTA, and SUTA taxes have separate liability accounts.

Accepted Answer

A) True 
 B)False

Question 16

The employer usually pays the entire cost of

Accepted Answer

A)  FICA. 
B)  Workers' Compensation Insurance. 
C)  Medical Insurance. 
D)  Disability Insurance. 
A)  FICA. 
B)  Workers' Compensation Insurance. 
C)  Medical Insurance. 
D)  Disability Insurance.

Question 17

The date on which an employer must pay Social Security and Medicare taxes is

Accepted Answer

A)  January 1 of each year. 
B)  December 31 of each year. 
C)  June 30 of each year. 
D)  dependent on the amount of the taxes. 
A)  January 1 of each year. 
B)  December 31 of each year. 
C)  June 30 of each year. 
D)  dependent on the amount of the taxes.

Question 18

Match the terms with the definitions.
-A tax levied on employers to raise funds to pay unemployment benefits.

Accepted Answer

A) Electronic Federal Tax Payment System (EFTPS) 
B) employer FICA taxes 
C) Employer Identification Number (EIN) 
D) Form W-2 
E) Form W-3
F)Form 940
G)Form 941
H)FUTA (Federal Unemployment Tax Act) tax
I)merit-rating system
J)self-employment income
K)self-employment tax
L)SUTA (state unemployment tax) tax
M)workers' compensation insurance 
A) Electronic Federal Tax Payment System (EFTPS) 
B) employer FICA taxes 
C) Employer Identification Number (EIN) 
D) Form W-2 
E) Form W-3
F)Form 940
G)Form 941
H)FUTA (Federal Unemployment Tax Act) tax
I)merit-rating system
J)self-employment income
K)self-employment tax
L)SUTA (state unemployment tax) tax
M)workers' compensation insurance

Question 19

Employers who have $100,000 or more due in federal income tax withholding and Social Security and Medicare taxes on any day during the current quarter should journalize the debt and pay at the end of the

Accepted Answer

A)  year. 
B)  quarter. 
C)  month following the end of the quarter. 
D)  next banking day. 
A)  year. 
B)  quarter. 
C)  month following the end of the quarter. 
D)  next banking day.

Question 20

Match the terms with the definitions.
-A number that identifies the employer on all payroll forms and reports filed with the IRS.

Accepted Answer

A) Electronic Federal Tax Payment System (EFTPS) 
B) employer FICA taxes 
C) Employer Identification Number (EIN) 
D) Form W-2 
E) Form W-3
F)Form 940
G)Form 941
H)FUTA (Federal Unemployment Tax Act) tax
I)merit-rating system
J)self-employment income
K)self-employment tax
L)SUTA (state unemployment tax) tax
M)workers' compensation insurance 
A) Electronic Federal Tax Payment System (EFTPS) 
B) employer FICA taxes 
C) Employer Identification Number (EIN) 
D) Form W-2 
E) Form W-3
F)Form 940
G)Form 941
H)FUTA (Federal Unemployment Tax Act) tax
I)merit-rating system
J)self-employment income
K)self-employment tax
L)SUTA (state unemployment tax) tax
M)workers' compensation insurance

Exam 9: Payroll Accounting: Employer Taxes and Reports

The date by which federal income tax withholding, Social Security, and Medicare taxes must be paid depends on the amount of these taxes.

The adjustment to journalize an additional premium due at the end of the year for workers' compensation insurance (WCI) is

Employer payroll taxes clearly are an insignificant cost of doing business.

In general, the larger the amount of Social Security and Medicare taxes due from an employer, the more frequently payments must be made.

The federal unemployment tax is levied on

Form 940 is called the Employer's Quarterly Federal Tax Return.

Match the terms with the definitions. -Employer's Annual Federal Unemployment Tax Return

The cost of workers' compensation insurance to a construction company with 15 employees would likely be higher than the cost of insurance to a small candy company with 15 employees.

An Employer Identification Number (EIN) is obtained by the employer from the

Employers are allowed a credit against the FUTA tax for participation in state unemployment programs.

The payroll register is a key source of information for computing employer payroll taxes.

Which of the following is a payroll tax normally paid by both the employee and the employer?

Which of the following tax programs often has a merit-rating system to encourage employers to provide regular employment for workers?

Employers who have less than $2,500 due in federal income tax withholding and Social Security and Medicare taxes at the end of the quarter should journalize the debt and pay at the end of the

Social Security, Medicare, FUTA, and SUTA taxes have separate liability accounts.

The employer usually pays the entire cost of

The date on which an employer must pay Social Security and Medicare taxes is

Match the terms with the definitions. -A tax levied on employers to raise funds to pay unemployment benefits.

Employers who have $100,000 or more due in federal income tax withholding and Social Security and Medicare taxes on any day during the current quarter should journalize the debt and pay at the end of the

Match the terms with the definitions. -A number that identifies the employer on all payroll forms and reports filed with the IRS.

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employee Earnings and Deductions

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for Accounts Receivable

Accounting for Notes and Interest

Accounting for Long-Term Assets

Accounting for Partnerships

Corporations: Organization and Capital Stocks

Corporations: Earnings, Taxes, Distributions, and the Retained Earnings Statement

Corporations: Bonds

Statement of Cash Flows

Analysis of Financial Statements

Departmental Accounting

Manufacturing Accounting: The Job Order Cost System

Manufacturing Accounting: The Work Sheet and Financial Statements

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