Exam 11: Payroll Taxes, Deposits, and Reports

Samantha Rodriguez had gross earnings for the pay period ending 10/15/19 of $5,785. Her total gross earnings as of 9/30/19 were $115,700. Social Security taxes are 6.2% on a maximum earnings of $122,700 per year and Medicare taxes are 1.45% of all earnings. The Medicare tax due by her employer from her 10/15/19 paychecks is:

Form 940, which is used to report the employer's federal unemployment tax, must be filed quarterly.

The FUTA tax, like the social security tax, is levied on both the employer and the employee and, therefore, is withheld from employee's pay.

Identify the list of accounts below that would normally all have a debit balance.

The payroll register of the Hound Manufacturing Company showed total employee earnings of $36,000 for the week ended September 20, 2019. Compute each of the employer's payroll taxes for the period. Use a rate of 6.2 percent for the employer's share of the social security tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. Assume all earnings are taxable.

To record the payment of SUTA tax, the accountant would

The entry to record the employer's payroll taxes would include a debit to an expense account and a credit to one or more liability accounts.

Alfred Spindle earned gross wages of $1,850 for the week ended June 21, 2019. His gross wages year to date, prior to his June 21 paycheck, were $42,620. He had $136 withheld from his pay for federal income taxes, and $86 for health insurance. Social Security and is 6.2% and Medicare tax is 1.45%; the federal unemployment tax rate is 0.6% and the state unemployment tax rate is 4.2%, both on a maximum of $7,000 per each employee's annual earnings. The journal entry to record the employer payroll tax expense associated with Alfred's June 21, 2019, paycheck would include

The entry to record a deposit of federal income taxes withheld and social security and Medicare taxes, would include a

Only the employer is responsible for paying

Jerry Little's gross wages as of October 31 were $110,000. He earned gross wages of $4,000 for the pay period ended November 15, 2019. Deducted from his paycheck this period, were federal income taxes of $400, state income taxes of $150, social security of 6.2% on the first $122,700 and Medicare tax of 1.45%. State Unemployment Tax is 4%, and Federal Unemployment tax is 0.6% on the first $7,000 of annual earnings. Calculate the employer payroll income taxes associated with Jerry's November 15 paycheck.

Orleans Manufacturing estimates that its office employees will earn $87,000 next year and its factory employees will earn $272,000. The firm pays the following rates for workers' compensation insurance: $0.55 per $100 of wages for the office employees and $4.75 per $100 of wages for the factory employees. Compute the estimated premiums for the office and factory employees.

The entry to record a payroll tax that is incurred by the employer would include a debit to a(n)________ account.

Form 940 must be filed________time(s)a year.

The payroll register of Burdick Travel Agency showed total employee earnings of $5,280 for the week ended June 7, 2019. Compute the employer's payroll taxes for the period. The tax rates are: Social security tax, 6.2 percent; Medicare tax, 1.45 percent; FUTA tax, 0.6 percent; SUTA tax, 2.2 percent. All earnings are taxable. Record the employer's payroll taxes for the period on page 4 of a general journal.

A firm prepares copies of the Wage and Tax Statement, Form W-2, for which of the following? Check all that apply. ________1. One copy for the employee's records. ________2. One copy for the employer's records. ________3. One copy for the supervisor's records. ________4. One copy for city or county income tax. ________5. One copy for the employee to attach to the state income tax return. ________6. One copy for the employee to attach to the federal income tax return. ________7. One copy for the employer to send to the Social Security Administration ________8. One copy for the employee to send to the Social Security Administration

Form 940 is used to report ________ taxes.

The payroll register of the Fox Manufacturing Company showed total employee earnings of $32,000 for the week ended April 19, 2019. Compute each of the employer's payroll taxes for the period. Use a rate of 6.2 percent for the employer's share of the social security tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. Assume all earnings are taxable.

For which of the following is there no limit to the amount of wages subject to the tax?

Both the employer and the employee are responsible for paying