Exam 8: Paying,recording,and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process

Both employer and employee contribute to FICA-OASDI and SUTA tax.

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

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 SUTA Payable

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 $\frac{1}{2}$ ) Employee Name B. Woodard J. Thomas K. McCann Pay Rate \ 2,000/ 13.00 17.00 Hours Worked Salaried 51 46 Cumulative \ 98,000 40,000 42,000 Department Office Shop Shop Federal Income Tax Withheld \ 779.00 320.00 330.00 Assume: FICA-OASDI is 6.2% based on a limit of $106,800 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% -Prepare the general journal entry to record the payroll. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

Using the information below,determine the amount of the payroll tax expense for B.Harper Company's first payroll of the year.In your answer list the amounts for FICA (OASDI and Medicare),SUTA,and FUTA. Employee Taxable Farning K. Addington \ 550 K. Wilcox 400 T. Shama 320 Assume: FICA tax rates are: OASDI 6.2% on a limit of $106,800 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

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

Payroll Cash is a(n):

A banking day is any day that the bank is open to the public for business.

The form used to complete the annual federal unemployment report is Form 941.

Kristi's Mentoring had the following information for the pay period ending September 30: Employee Name T. Hill V. Chandler M. Hill Pay rate \ 4,500 12.00 13.00 Hours worked Salaried 48 43 Cumulative earnings \ 103,000 51,000 5,200 Department Office Tutor Tutor Federal income tax withheld \ 2,000.00 215.00 208.00 Assume: FICA-OASDI applied to the first $106,800 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 regular earnings.________

Kristi's Mentoring had the following information for the pay period ending September 30: Employee Name T. Hill V. Chandler M. Hill Pay rate \ 4,500 12.00 13.00 Hours worked Salaried 48 43 Cumulative earnings \ 103,000 51,000 5,200 Department Office Tutor Tutor Federal income tax withheld \ 2,000.00 215.00 208.00 Assume: FICA-OASDI applied to the first $106,800 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 employer's payroll tax expense. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

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 $\text { Assume : }$ FICA-OASDI applied to the first $106,800 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?

What liability account is reduced when the employees are paid?

Prepaid Worker's Compensation Insurance is what type of account?

Great Lakes Tutoring had the following payroll information on February 28: Employee Gross Pay Cumulative Earnings Prior to this Payroll R Hill \ 4,000 \ 4,000 Assume: FICA tax rates are: OASDI 6.2% on a limit of $106,800 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 tax expense would include:

The following amounts are an expense to the company except:

Employees must receive W-3s by January 31 of the following year.

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 $\frac{1}{2}$ ) Employee Name B. Woodard J. Thomas K. McCann Pay Rate \ 2,000/ 13.00 17.00 Hours Worked Salaried 51 46 Cumulative \ 98,000 40,000 42,000 Department Office Shop Shop Federal Income Tax Withheld \ 779.00 320.00 330.00 Assume: FICA-OASDI is 6.2% based on a limit of $106,800 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.________

Which taxes are considered 941 taxes?

Kristi's Mentoring had the following information for the pay period ending September 30: Employee Name T. Hill V. Chandler M. Hill Pay rate \ 4,500 12.00 13.00 Hours worked Salaried 48 43 Cumulative earnings \ 103,000 51,000 5,200 Department Office Tutor Tutor Federal income tax withheld \ 2,000.00 215.00 208.00 Assume: FICA-OASDI applied to the first $106,800 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 state income tax.________