Exam 11: Payroll Taxes, Deposits, and Reports

Which of the following payroll taxes is not paid by the employee?

The entry to record the deposit of federal income taxes withheld includes a ____________________ to the Employee Income Tax Payable account.

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

The entry to record the social security and Medicare taxes levied on a business includes a debit to Payroll Taxes Expense.

Form 940 is used to report ____________________ taxes.

A copy of the Form W-2 for each employee is submitted to the Social Security Administration along with

Beachside Manufacturing estimates that its office employees will earn $54,000 next year and its factory employees will earn $280,000. The firm pays the following rates for workers' compensation insurance: $0.40 per $100 of wages for the office employees and $4.10 per $100 of wages for the factory employees. Compute the estimated premiums for the office and factory employees.

Both the employer and the employee are responsible for paying

Tax returns for the federal unemployment tax are due

Form 941 is used to report federal income taxes withheld, social security taxes, and ____________________ taxes.

The frequency of deposits of federal income taxes withheld and social security and Medicare taxes is determined by the amount owed.

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.

Roy DeSoto earns a regular hourly salary of $24.50. He is paid time-and-a-half for all hours in excess of 40 in the week. For the week ended March 8, 2013, he worked a total of 50 hours. His gross wages year to date, prior to his March 8, paycheck, are $11,980. Social Security Tax is 6.2%, Medicare Tax is 1.45%, federal unemployment tax is .8% and state unemployment tax is 4.2%, both on a maximum of $7,000 of gross wages per year. What is the employer's payroll tax expense for Roy for the week ended March 8, 2013?

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

A firm must issue a Form ____________________ to each employee by January 31 of the year following the year during which the wages were earned.

Generally, the base earnings subject to state unemployment taxes is

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

After the ABC Corporation paid its employees on June 15, 2013, and recorded the corporation's share of payroll taxes for the payroll paid that date, the firm's general ledger showed a balance of $1,620 in the Social Security Tax Payable account, a balance of $401 in the Medicare Tax Payable account, and a balance of $1,851 in the Employee Income Tax Payable account. On June 16, 2013, the business issued a check to deposit the taxes owed in the local bank. Record this transaction on page 15 of a general journal.

Orleans Manufacturing estimates that its office employees will earn $75,000 next year and its factory employees will earn $200,000. 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.

To record a deposit of federal income taxes withheld and social security and Medicare taxes, the accountant would