Exam 7: Employee Earnings and Deductions

Which of the following is true about the Federal Insurance Contributions Act?

The FICA Tax Payable account is usually used for both the employees' and the employer's share of FICA taxes (Social Security and Medicare).

John Smith is paid $15 per hour and he worked 35 hours during the week. What is John's gross pay?

All of the following are payroll taxes that are expenses of the employer except

The Medicare tax is 6.2 percent of unlimited gross earnings.

Match the terms below with the correct definitions. -Taxes paid only by employers under the provisions of the Federal Unemployment Tax Act

A law that protects employees and dependents against losses due to death or injury on the job is:

The payroll register contains the earnings of all the employees for the pay period.

A plumber who sets his own work schedule is an example of:

The structure of the payroll entry to record the payroll is

There is no ceiling on each employee's total earnings that are subject to federal income tax.

Match the terms below with the correct definitions. -A form that summarizes payroll information for a given payroll period

What item is NOT used to calculate the federal income tax to be withheld by employers?

State and federal unemployment taxes are two required payroll deductions for employees.

Assuming that a payroll bank account is used, when the payroll is initially recorded, Salaries Payable is credited for total take-home pay.

The employer records the amount of federal income tax withheld as

The portion of FICA taxes designated as Medicare is paid by

A carpenter who decides his own hours is an example of an independent contractor.