Question 1

Patalano's Pros is a semi-weekly schedule depositor.Which forms must they file to reconcile their payroll taxes?

Accepted Answer

A)  Forms 940 and 944 
B)  Forms 941 and 944 
C)  Form 944 and Schedule B 
D)  Form 941 and Schedule B

Question 2

Jamie earns $232,000 annually.Compute the FICA taxes for both the employee and employer share.The Social Security wage base is $118,500.What is the total annual FICA tax liability for Jamie's pay?

Accepted Answer

A)  $21,710 
B)  $19,270 
C)  $18,160 
D)  $17,872

Question 3

An employer files Form 941 on either a quarterly basis or when they deposit payroll taxes,whichever is more frequent.

Accepted Answer

A) True 
 B)False

Question 4

A firm's frequency of tax deposits is determined by payroll tax liability during the lookback period.

Accepted Answer

A) True 
 B)False

Question 5

_________________________ allows firms to allocate costs accurately among departments.

Accepted Answer

A)  Labor costing 
B)  Labor distribution 
C)  Compensation analysis 
D)  Benefit analysis

Question 6

Which of the following tasks could use data from the Benefit Analysis Report (Select all that apply)?

Accepted Answer

A)  Budgeting 
B)  Benchmarking 
C)  Departmental Reporting 
D)  Labor Planning

Question 7

Which of the following is not an example of an employer's payroll-related business expense?

Accepted Answer

A)  Tax deposits and filings 
B)  Voluntary deduction receipt 
C)  Tax withholding and matching 
D)  Employee compensation and accountability

Question 8

Red's Waterworks is a semiweekly depositor.One month of the recent quarter's Schedule B had the following information: 
What is Red Waterworks' tax liability for Month 1?

Accepted Answer

A)  $29,811.87 
B)  $42,116.29 
C)  $56,484.81 
D)  $39,138.14

Question 9

Daigneault Designs has the following amounts listed on their Form 941: 
What amount belongs on line 5e?

Accepted Answer

A)  $67,248.00 
B)  $8,338.75 
C)  $10,288.94 
D)  $5,860.00

Question 10

Francesca earns $2,400 per pay period.Compute the FICA taxes for both employee and employer share.What is the total FICA tax liability for Francesca's pay per pay period? (Assume that Francesca has not met the FICA wage base. )

Accepted Answer

A)  $297.60 
B)  $332.40 
C)  $218.40 
D)  $367.20

Question 11

Trick's Costumes has 65 employees,who are distributed as follows:
 The payroll-related costs for the year are $1,043,050.If Trick's Costumes does not use departmental classification,how much is allocated to each department?

Accepted Answer

A)  $153,910 
B)  $202,850 
C)  $208,610 
D)  $260,763

Question 12

Which of the following best describes the function of a benefit analysis report?

Accepted Answer

A)  It is an analysis of the benefits paid to employees. 
B)  It is an analysis of each employee's benefit package. 
C)  It is an analysis of the effect of labor costs on departmental profitability. 
D)  It is an analysis of each department's benefit to the company.

Question 13

McBean Farms has the following information on their Form 941: 
What amount should be entered in Column 2,Lines 5a and 5c? (Assume no Section 125 health insurance and that none of the employees had exceeded the Social Security wage base. )

Accepted Answer

A)  $17,400.67 and $4,069.51,respectively 
B)  $140,328.00 
C)  $8,700.34 and $2,034.76,respectively 
D)  $156,592

Question 14

Mandatory employer-paid payroll taxes are known as statutory deductions.

Accepted Answer

A) True 
 B)False

Question 15

Trick's Costumes has 65 employees,who are distributed as follows:
 The payroll-related costs for the year are $1,043,050.If Trick's Costumes does use departmental classification,how much is allocated to the Fabrication department? (Do not round intermediate calculations.Round final answer to 2 decimal places. )

Accepted Answer

A)  $563,190.56 
B)  $401,173.10 
C)  $433,266.92 
D)  $481,407.69

Question 16

Deschutes Companies located in Oregon has a SUTA tax rate of 4.10% and a wage base of $36,900.During the last calendar year the company paid $393,750 in wages and salaries for 11 employees.What is the total of the FUTA and SUTA tax liabilities for Deschutes Companies? (Assume that all employees have exceeded the FUTA and SUTA wage bases. )

Accepted Answer

A)  $17,103.90 
B)  $16,709.50 
C)  $18,323.40. 
D)  $15,785.60

Question 17

Electronic tax deposits are usually processed through the

Accepted Answer

A)  AFTPS. 
B)  ESTPF. 
C)  EPS. 
D)  EFTPS.

Question 18

Maeisha works for Brown Corporation,where she earns $45,000.Her employer contributes 1% of her pay to her pension fund and pays the following monthly amounts for her insurance: health,$300;life,$50;AD&D,$25.She receives $40 per month for her gym membership and receives a $400 bonus at the end of the year.Brown Corporation pays employer-only taxes and insurance that comprises an additional 12% of Maiesha's annual salary.What is Maeisha's total annual compensation?

Accepted Answer

A)  $56,230.00 
B)  $54,849.30 
C)  $50,766.80 
D)  $54,451.30

Question 19

The total of a firm's annual wages and salaries must match on Forms _________________.

Accepted Answer

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

Question 20

Cordelia is an employee of Snaktyme Foods in Missouri.She earns $24,000 annually.Snaktyme has provided uniforms worth $350 and training worth $850 as part of her employment.She contributes 4% to her 401(k),of which her employer matches half.Cordelia's employer pays the following monthly amounts toward her insurance: health,$125;life,$50;AD&D,$30.Snaktyme Foods pays employer-only taxes and insurance that comprises an additional 14% of Cordelia's annual salary.What is Cordelia's total annual compensation?

Accepted Answer

A)  $28,000 
B)  $31,500 
C)  $29,260 
D)  $32,900

Exam 5: Employer Payroll Taxes and Labor Planning

Patalano's Pros is a semi-weekly schedule depositor.Which forms must they file to reconcile their payroll taxes?

Jamie earns $232,000 annually.Compute the FICA taxes for both the employee and employer share.The Social Security wage base is $118,500.What is the total annual FICA tax liability for Jamie's pay?

An employer files Form 941 on either a quarterly basis or when they deposit payroll taxes,whichever is more frequent.

A firm's frequency of tax deposits is determined by payroll tax liability during the lookback period.

_________________________ allows firms to allocate costs accurately among departments.

Which of the following tasks could use data from the Benefit Analysis Report (Select all that apply) ?

Which of the following is not an example of an employer's payroll-related business expense?

Red's Waterworks is a semiweekly depositor.One month of the recent quarter's Schedule B had the following information: What is Red Waterworks' tax liability for Month 1?

Daigneault Designs has the following amounts listed on their Form 941: What amount belongs on line 5e?

Francesca earns $2,400 per pay period.Compute the FICA taxes for both employee and employer share.What is the total FICA tax liability for Francesca's pay per pay period? (Assume that Francesca has not met the FICA wage base. )

Trick's Costumes has 65 employees,who are distributed as follows: The payroll-related costs for the year are $1,043,050.If Trick's Costumes does not use departmental classification,how much is allocated to each department?

Which of the following best describes the function of a benefit analysis report?

McBean Farms has the following information on their Form 941: What amount should be entered in Column 2,Lines 5a and 5c? (Assume no Section 125 health insurance and that none of the employees had exceeded the Social Security wage base. )

Mandatory employer-paid payroll taxes are known as statutory deductions.

Electronic tax deposits are usually processed through the

The total of a firm's annual wages and salaries must match on Forms _________________.