Exam 11: Payroll Taxes, Deposits, and Reports

A business pays ____________________ and Medicare taxes at the same rate and on the same taxable wages as its employees.

The payroll register of Vtech Enterprises showed total employee earnings of $2,100 for the week ended August 2, 2013. 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, 0.8 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.

After the Mansley Company paid its employees on July 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 $1,695 in the Social Security Tax Payable account, a balance of $321 in the Medicare Tax Payable account, and a balance of $1,968 in the Employee Income Tax Payable account. On July 16, 2013, the business issued a check to deposit the taxes owed in the local bank. Record this transaction on page 23 of a general journal.

The employer must issue each employee a Form W-2 by January 15 of the next year.

Rick O'Shea, the only employee of Hunter Furniture Company, makes $30,000 per year and is paid once a month. For the month of January, his federal income taxes withheld are $180, state income taxes withheld are $37, social security is 6.2% on a maximum wages of $106,800, Medicare tax is 1.45%, State Unemployment Tax is 4.2%, and Federal Unemployment tax is .8%, both on a maximum wages of $7,000 per employee. What is the employer's payroll tax expense from Rick's paycheck?

State Unemployment Tax Payable is ____________________ when the tax is paid to the state.

Employees' payments for federal income taxes withheld and social security and Medicare taxes are periodically

On Form 941, the Employer's Quarterly Federal Tax Return, a firm calculates its liability for the quarter for

Compute and record workers' compensation insurance premiums for Evergreen Manufacturing as follows: 1. The firm estimates that its office employees will earn $49,000 next year and its factory employees will earn $150,000. The firm pays the following rates for workers' compensation insurance: $0.40 per $100 of wages for the office employees and $3.50 per $100 of wages for the factory employees. Compute the estimated premiums for 2013. On page 54 of a general journal, record the payment of the estimated premium. Date the entry January 12, 2013. 2. On January 4, 2014, an audit of the firm's payroll records for 2013 showed that the firm had actually paid wages of $53,000 to its office employees and $161,000 to its factory employees. Compute the actual premium for the year and the balance due the insurance company or the credit due the firm. In the general journal, record the entry to adjust the Workers' Compensation Insurance Expense as of the end of 2013. Date the entry December 31, 2013.

Form ____________________ is submitted with a copy of the Form W-2 for each employee to the Social Security Administration.

Mr. Zee worked 48 hours during the week ended January 18, 2013. He is paid $10 per hour, and is paid time and a half for all hours over 40 in a week. He had $100 withheld from his pay for federal income taxes, and $20 withheld for health insurance. The combined social security and Medicare tax rate is 7.65%, and the federal and state unemployment tax rates are .8% and 3.8%, respectively. All earnings are taxable. What is the total employer payroll tax expense for Mr. Zee's current paycheck?

Which of the following taxes is not withheld from an employee's pay?

The payroll register of Rapid Repairs showed total employee earnings of $1,870 for the week ended April 5, 2013. 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, 0.8 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.

If at the end of the year the firm owes a balance for workers' compensation insurance, the adjusting entry includes a

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

This preprinted government form is used to report federal unemployment taxes.

The payroll register of the Hound Manufacturing Company showed total employee earnings of $36,000 for the week ended September 20, 2013. Compute 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, 0.8 percent for FUTA tax, and 5.4 percent for SUTA tax. All earnings are taxable.

The frequency of deposits of federal income taxes withheld and social security and Medicare taxes is most dependent on

Each employee of a firm will receive several copies of Form W-2, the Wage and Tax Statement, from the

The payroll register of the Retro Manufacturing Company showed total employee earnings of $25,000 for the week ended January 18, 2013. Compute 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, 0.8 percent for FUTA tax, and 5.4 percent for SUTA tax. All earnings are taxable.