Exam 9: Payroll Accounting: Employer Taxes and Reports

Match the terms with the definitions. -Employee's Wage and Tax Statement

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

Match the terms with the definitions. -Provides insurance for employees who suffer a job-related illness or injury.

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

To journalize the employer's payroll taxes,we need to credit all of the following accounts EXCEPT

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

One-half of the self-employment tax is really a personal expense to the owner of the business.

Selected information from the payroll register of Barbara's Stables for the week ended September 28,20--,is as follows: Social Security tax is 6.2% on the first $110,100 of earnings for each employee.Medicare tax is 1.45% of gross earnings,FUTA tax is 0.8%,and SUTA tax is 5.4% each on the first $7,000 of earnings. $\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text {Cumulative Pay} \quad\text {Current}\quad\quad\quad\text {Taxable Earnings}$ Before Current Gross Unemployment Social Employee Name Earnings Pay Compensation Security Carlosi, Peggy \ 84,240 \ 2,350 Sanchez, Carmela 81,900 2,100 Delaney, Roger 109,800 3,320 Weitz, Alana 6,300 1,100 Dunhill, Craig 6,800 1,000 Bella Stephen 42,330 1,850 Calculate the amount of taxable earnings for unemployment and Social Security taxes,and prepare the journal entry to record the employer's payroll taxes as of September 28,20--.

Match the terms with the definitions. -The net income of a trade or business run by an individual.

By January 31 of each year,employers must provide each employee with a Wage and Tax Statement called ____________________.

Mark Turney owns Creative Corners.He does his banking at United Federal Bank (UFB)in Tucson,Arizona.The amounts in his general ledger for payroll taxes and the employee's withholding of Social Security,Medicare,and federal income tax as of April 15 of the current year show the following: Social Security tax payable (employer and employee),$3,020; Medicare tax payable (employer and employee),$734; FUTA tax payable,$84; SUTA tax payable,$414; and Employees income tax payable,$4,622.Journalize the payment of the Form 941 deposit to UFB and the payment of the SUTA tax to the State of Arizona as of April 15,20--.

Self-employment tax is double the Social Security and Medicare rates.

Self-employment income is the gross income of a trade or business run by an individual.

Employers report payroll taxes withheld each quarter using ____________________.

By January 31 each year,employers must furnish each employee with a Wage and Tax Statement.

The payroll register for Star Express & Company for the pay period ended January 31, 20--, showed the following: Total Earnings \ 834,000.00 Taxable Earnings: FUTA 6,700.00 SUTA 6,700.00 Social Security 787,000.00 Deductions: Federal income tax 129,600.00 Social Security tax 48,794.00 Medicare tax 11,411.50 Pension plan 38,450.00 Health insurance 23,400.00 United Way 16,000.00 $\text { The Social Security tax rate is } 6.2 \% , \text { Medicare tax is } 1.45 \% \text {, FUTA tax is } 0.8 \% \text {, and SUTA tax is } 5.4 \%$ Required: 1. Prepare a journal entry to record the payroll on January 31, 20--. 2. Prepare a journal entry to record the employer's payroll taxes.

Any Federal Reserve Bank or other authorized commercial bank may issue an Employer Identification Number (EIN).

The EFTPS is an electronic funds transfer system for making federal tax deposits.

Self-employed individuals can be viewed as both employer and employee.

The federal unemployment tax is levied on