Question 1

Employers are required to pay FICA taxes higher in amount to the FICA taxes withheld than their employees.

Accepted Answer

A) True 
 B)False

Question 2

Lee Loren has cumulative earnings of $6,750 and earned $745 during the current pay period. If the FUTA tax rate is 0.6 percent, with a ceiling of $7,000, the employer payroll tax expense for FUTA is

Accepted Answer

A)  $54.00. 
B)  $5.96. 
C)  $0. 
D)  $1.50. 
E)  $15.00. 
A)  $54.00. 
B)  $5.96. 
C)  $0. 
D)  $1.50. 
E)  $15.00.

Question 3

The Sales Wage Expense would be used to record:

Accepted Answer

A)  Net pay for sales personnel 
B)  A holding account for wages due and payable 
C)  Gross Pay for Sales Personnel 
D)  Deductions for Sales Personnel 
A)  Net pay for sales personnel 
B)  A holding account for wages due and payable 
C)  Gross Pay for Sales Personnel 
D)  Deductions for Sales Personnel

Question 4

Explain the difference between Form W-2 and W-4 including why each form is needed by employers to complete payroll activities.

Accepted Answer

The W-2 form is a summary of each employ

Question 5

Which of the following statements is true?

Accepted Answer

A)  SUTA and FUTA Tax Rates are always the same 
B)  Payroll Tax Expense involves Federal Income Tax Withholding. 
C)  The FUTA wage taxable limit is $7,000 
D)  Withholding Federal Income Taxes is optional for the employer 
A)  SUTA and FUTA Tax Rates are always the same 
B)  Payroll Tax Expense involves Federal Income Tax Withholding. 
C)  The FUTA wage taxable limit is $7,000 
D)  Withholding Federal Income Taxes is optional for the employer

Question 6

Mark Construction Company received and paid a premium notice on January 5 for workers' compensation insurance stating the rates for the new year. Estimated employees' earnings for the year are as follows:
?
   At the end of the year, the exact figures for the payroll are as follows:
Instructions:
   
1.Record the entry in general journal form for the payment of estimated premium on
January 5.
2.Record the adjusting entries on December 31 for the insurance expired and for the additional premium.

Accepted Answer

The answer of Mark Construction Company received and paid a...

Question 7

Form 941 is submitted annually.

Accepted Answer

A) True 
 B)False

Question 8

The FUTA tax must be paid by the employer annually on December 31.

Accepted Answer

A) True 
 B)False

Question 9

A debit to the Payroll Tax Expense account means:

Accepted Answer

A)  The employer's payroll taxes have increased 
B)  The employer's payroll taxes have decreased 
C)  Both the employer's and the employee's payroll taxes have increased 
D)  The employer's and employee's payroll taxes have not changed 
A)  The employer's payroll taxes have increased 
B)  The employer's payroll taxes have decreased 
C)  Both the employer's and the employee's payroll taxes have increased 
D)  The employer's and employee's payroll taxes have not changed

Question 10

The purpose of Form 941 is to report the tax liability for withholdings of employees':

Accepted Answer

A)  FICA and federal income taxes. 
B)  FICA and property taxes. 
C)  State Unemployment tax (SUT
A)  and gift taxes. 
D)  Federal Unemployment tax (FUT
A)  and estate taxes. 
E)  State Unemployment tax (SUT
A)  and infrastructure taxes. 
A)  FICA and federal income taxes. 
B)  FICA and property taxes. 
C)  State Unemployment tax (SUT
A)  and gift taxes. 
D)  Federal Unemployment tax (FUT
A)  and estate taxes. 
E)  State Unemployment tax (SUT
A)  and infrastructure taxes.

Question 11

The entry to record the employer's payroll taxes includes a

Accepted Answer

A)  credit to Employees' Federal Income Tax Payable. 
B)  debit to FICA Tax Expense. 
C)  debit to Salaries Payable. 
D)  credit to FICA Tax Payable. 
E)  debit to Federal Unemployment Tax Payable. 
A)  credit to Employees' Federal Income Tax Payable. 
B)  debit to FICA Tax Expense. 
C)  debit to Salaries Payable. 
D)  credit to FICA Tax Payable. 
E)  debit to Federal Unemployment Tax Payable.

Question 12

Compare and contrast payroll Forms 940 and 941.

Accepted Answer

Compare: Payroll taxes for employer. Bot

Question 13

Rounding differences with the employee and employer amounts of FICA taxes are handled on the 941 report by:

Accepted Answer

A)  Any differences are paid in or refunded as appropriate 
B)  Line 7 accommodates fraction differences, which accommodates rounding 
C)  When differences occur, the numbers are adjusted before the report to balance 
D)  None of the above 
A)  Any differences are paid in or refunded as appropriate 
B)  Line 7 accommodates fraction differences, which accommodates rounding 
C)  When differences occur, the numbers are adjusted before the report to balance 
D)  None of the above

Question 14

Which of the following amounts does Form 941 ask for?

Accepted Answer

A)  Total number of employees during the quarter 
B)  Total wages and tips subject to federal tax withholding 
C)  Total federal income tax withheld 
D)  All of these 
E)  None of these 
A)  Total number of employees during the quarter 
B)  Total wages and tips subject to federal tax withholding 
C)  Total federal income tax withheld 
D)  All of these 
E)  None of these

Question 15

This form is also called the Transmittal of Wage and Tax Statement.

Accepted Answer

A)  W-2 
B)  941 
C)  940 
D)  W-3 
A)  W-2 
B)  941 
C)  940 
D)  W-3

Question 16

Companies furnish their employees with W-2 forms quarterly.

Accepted Answer

A) True 
 B)False

Question 17

There is a ceiling on each employee's annual earnings that are subject to federal income taxes.

Accepted Answer

A) True 
 B)False

Question 18

The W-2 form contains all of the following EXCEPT:

Accepted Answer

A)  Wages 
B)  Employee Social Security Number 
C)  EIN 
D)  Number of Allowances 
A)  Wages 
B)  Employee Social Security Number 
C)  EIN 
D)  Number of Allowances

Question 19

Which of the following statements is false?

Accepted Answer

A)  Employers are required to pay FICA taxes matching the amount withheld from their employees. 
B)  Employers are responsible for paying FUTA Taxes. 
C)  Employers are responsible for withholding and remitting Federal Income Taxes. 
D)  Employers must file form 941 quarterly. 
A)  Employers are required to pay FICA taxes matching the amount withheld from their employees. 
B)  Employers are responsible for paying FUTA Taxes. 
C)  Employers are responsible for withholding and remitting Federal Income Taxes. 
D)  Employers must file form 941 quarterly.

Question 20

Extra hours that are added to wage information in order to increase pay is an example of:

Accepted Answer

A)  Ghost Employee Fraud 
B)  False Wage Claim Fraud 
C)  False Expense Reimbursement Fraud 
D)  None of the above 
A)  Ghost Employee Fraud 
B)  False Wage Claim Fraud 
C)  False Expense Reimbursement Fraud 
D)  None of the above

Employers are required to pay FICA taxes higher in amount to the FICA taxes withheld than their employees.

Lee Loren has cumulative earnings of $6,750 and earned $745 during the current pay period. If the FUTA tax rate is 0.6 percent, with a ceiling of $7,000, the employer payroll tax expense for FUTA is

The Sales Wage Expense would be used to record:

Explain the difference between Form W-2 and W-4 including why each form is needed by employers to complete payroll activities.

Which of the following statements is true?

Form 941 is submitted annually.

The FUTA tax must be paid by the employer annually on December 31.

A debit to the Payroll Tax Expense account means:

The purpose of Form 941 is to report the tax liability for withholdings of employees':

The entry to record the employer's payroll taxes includes a

Compare and contrast payroll Forms 940 and 941.

Rounding differences with the employee and employer amounts of FICA taxes are handled on the 941 report by:

Which of the following amounts does Form 941 ask for?

This form is also called the Transmittal of Wage and Tax Statement.

Companies furnish their employees with W-2 forms quarterly.

There is a ceiling on each employee's annual earnings that are subject to federal income taxes.

The W-2 form contains all of the following EXCEPT:

Which of the following statements is false?

Extra hours that are added to wage information in order to increase pay is an example of:

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters

Exam 8: Employer Taxes, Payments, and Reports

Employers are required to pay FICA taxes higher in amount to the FICA taxes withheld than their employees.

Lee Loren has cumulative earnings of $6,750 and earned $745 during the current pay period. If the FUTA tax rate is 0.6 percent, with a ceiling of $7,000, the employer payroll tax expense for FUTA is

The Sales Wage Expense would be used to record:

Explain the difference between Form W-2 and W-4 including why each form is needed by employers to complete payroll activities.

Which of the following statements is true?

Form 941 is submitted annually.

The FUTA tax must be paid by the employer annually on December 31.

A debit to the Payroll Tax Expense account means:

The purpose of Form 941 is to report the tax liability for withholdings of employees':

The entry to record the employer's payroll taxes includes a

Compare and contrast payroll Forms 940 and 941.

Rounding differences with the employee and employer amounts of FICA taxes are handled on the 941 report by:

Which of the following amounts does Form 941 ask for?

This form is also called the Transmittal of Wage and Tax Statement.

Companies furnish their employees with W-2 forms quarterly.

There is a ceiling on each employee's annual earnings that are subject to federal income taxes.

The W-2 form contains all of the following EXCEPT:

Which of the following statements is false?

Extra hours that are added to wage information in order to increase pay is an example of:

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters