Exam 9: Payroll Accounting: Employer Taxes and Reports

The payroll register for Automotive Service Center for the pay period ended June 30,20--,showed the following: Total Earnings \ 623,000.00 Taxable Earnings: 4,500.00 FUTA 4,500.00 SUTA 574,000.00 Deductions: Federal income tax 91,800.00 Social Security tax 35,588.00 Medicare tax 9,033.50 Pension plan 4,800.00 Health insurance 16,200.00 United Way 12,000.00 The Social Security tax rate is 6.2%,Medicare tax is 1.45%,FUTA tax is 0.8%,and SUTA tax is 5.4%. Required: 1.Prepare a journal entry to record the payroll on June 30,20--. 2.Prepare a journal entry to record the employer's payroll taxes.

When all taxes have been paid,the Social Security Tax Payable account will have

FUTA taxes are deposited and an annual report of federal unemployment tax is filed using Form 8109.

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

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

Match the terms with the definitions. -Transmittal of Wage and Tax Statements

Persons earning self-employment income of $400 or more must pay a self-employment tax.

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.

Match the terms with the definitions. -A system to encourage employers to provide regular employment to workers.

From the following information from the payroll register of Veronica's Auto Supply Store,calculate the amount of taxable earnings for unemployment and FICA tax,and prepare the journal entry to record the employer's payroll taxes as of April 30,20--.Social Security tax is 6.2% on the first $94,200 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. $\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Cumulative}\quad \text { Pay Current } \quad \underline{\text { Taxable Earnings }}$ Before Current Gross Unemployment Social Carnavale, Liz \ 6,400 \ 1,800 O'Malley, Sean 6,850 1,800 Sarlo, Jarred 109,300 3,700 Mandel, Melissa 74,200 3,200 Davenport, Vin 27,500 1,800

Each employer must have an Employer Identification Number (EIN)to show on all tax reports.

Workers' compensation provides insurance for employees who suffer a job-related illness or injury.

In most states,if an employer has very few former employees who collect unemployment compensation,the employer qualifies for a lower state unemployment tax rate.

The employer usually pays the entire cost of

The ____________________ tax is levied on employers to raise funds to pay unemployment benefits.

If an employer wishes,the FUTA tax may be deducted from employees' earnings.

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

A self-employment tax is required of an individual who owns his or her own business and makes

The self-employment tax rate is double the rate of

The employer FICA tax is levied on employers at the same rate and on the same earnings bases as the employee FICA tax.