Exam 7: Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Sam's earnings during the month of June were $1,700. His earnings for the year prior to June were $15,300. Sam's employer is subject to state unemployment of 2.0% and federal unemployment taxes of 0.6% on the first $7,000. The employer's unemployment payroll tax expense for June is:

Workers' compensation:

Given the following payroll items you are to identify whether they are the responsibility of the employer and/or the employee by placing an X in the appropriate column. -

To have less money withheld from your paycheck, an employee can claim more allowances than they actually have.

Explain the purpose of workers' compensation, and discuss the premium cost to the employer.

Prepaid Workers' Compensation Insurance is what type of account?

Workers' Compensation Insurance is:

Unemployment taxes are:

Premiums for workers' compensation insurance may be adjusted based on actual payroll amounts at the end of the year.

The taxable earnings column of the payroll register records the tax due.

Bob's Auction House's payroll for April includes the following data: What is the employer's portion of the taxes? (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)

The amount of federal income tax withheld from an employee during the year is determined by the employee's:

The Federal Insurance Contributions Act is better known as:

Gross Earnings are the same as:

A calendar quarter consists of:

An employer can reduce the federal unemployment tax rate by paying the state unemployment tax on time.

Bob's Cake House's payroll for April includes the following data: The employer's payroll tax for the period would be: (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)

Explain what is meant by the cumulative gross earnings.