Payroll
Lucas is a full-time exempt employee who earns an annual salary of $195,000. What is the employer's annual FICA tax responsibility for Jeremiah's annual salary, based on an annual Social Security tax wage base of $142,800?
$11,681.10
According to Publication 15-b, what is the annual cash value limit for excluded non-qualified achievement awards?
400
Which of the following is not a function of a benefit analysis report?
It is an analysis of each department's benefit to the company.
annual tax guide with tax withholding amounts
Publication 15-T
Which is not a step in computing net pay for each period?
Report fringe benefit balances
What is the term for mandatory payroll taxes that the employer must pay?
Statutory deductions
Why might an employee elect to have additional federal income tax withheld?
The employee wishes to reduce income tax liability.
Which of the following statements is true about Social Security tax deductions from gross pay?
The wage base is $142,800.
Which is true about most retirement plans?
They are protected by ERISA.
Before remittance, what effects do payroll tax entries have on a company's accounts?
They increase the firm's liabilities.
Besides serving as a backup in case of a computer system failure or other data breach, the employee earnings record contains the supporting data for periodic tax reports.
True
Garnishments are court-ordered amounts that an employer must withhold from an employee's post-tax pay and remit the amount to the appropriate authority.
True
__________ allows firms to allocate labor costs by any measure they need for managerial analysis.
benefit analysis
Which copy of Form W-2 should be submitted to the State, City, or Local Department?
copy 1
true about direct deposit
direct deposit most convenient for employers
An employee's disposable income is:
employee's pay minus legally required deductions
Forest is a full-time employee in Marlboro, South Dakota, who earns $58,450 annually, paid biweekly. His federal income tax is $287.00. What is the maximum amount that may be withheld from his pay for a child-support garnishment, assuming he is not in arrears and is not supporting another spouse? (Do not round intermediate calculations, only round final answer to two decimal points.)
$1,073.46
Mattie, the accountant for Lillibit's Kennels, filed Form 941 for the first quarter on May 12. The amount of taxes due to be paid with Form 941 was $10,678.00. The first failure to file notice was dated May 5. What is the amount that must be remitted, including the IRS penalty for the failure to file?
$12,813.60
Plutonium Casting has 30 employees, who are distributed as follows:
$137,219.20
Luke's Apiaries operates as a Wisconsin business. The employees' annual earnings for the past calendar year are as follows: Lisa, $35,300: Khalie, $28,065: Steve, $2,075; and Josh, $6,882. What is Luke's Apiaries' FUTA tax liability for the year?
$137.74
A High Deductible Health Plan (HDHP) has a family out-of-pocket maximum of __________ in 2021.
$14,000
Madaline is a government employee who is provided a car for commuting and other work-related purposes only. In the last calendar year, her commute is 24 miles each way and she worked 220 days. What is the amount of the company-car fringe benefit that will appear on her W-2? (Do not round intermediate calculations.)
$15,840.00
Contributions to FSAs in excess of what annual amount (as of 2021) are treated as taxable income?
$2,750
Quintero Printing has the following information on their Form 941: (Assume no Section 125 health insurance and that none of the employees had exceeded the Social Security wage base.)
$270,798.82 and $270,798.82, respectively
Quintero Printing has the following information on their Form 941: (Assume no Section 125 health insurance and that none of the employees had exceeded the Social Security wage base.)
$30,975.05
According to Publication 15-b, what is the annual cash value limit for excluded non-qualified achievement awards?
$400
Group-term life insurance must appear on the employee's W-2 after it exceeds __________.
$50,000
Tea Tree Therapeutics is an Arizona company with a SUTA tax of 5.2% and a SUTA wage base of $7,000. The employee earnings for the past year are: Theresa, $25,025; Gregori, $6,950; Alain, $20,275; and Katlyn, $5,145. Arizona employers pay a State Unemployment Insurance Tax (SUI) of 2.0% on all wages up to the first $7,000 annually. What is the total of Tea Tree Therapeutic' employer-share taxes for FUTA, SUTA, SUI, and FICA for the year? (Round your intermediate calculations to 2 decimal places.)
$6,426.13
From the employer's perspective, which of the following is a challenge of paying employees by paycard?
A chance that the employee will lose their paycard.
Which of the following affects an employee's federal tax withholding for Form W-4 dated 2020 or later?
Additional income
__________ benefits are never exempt from FICA taxes.
Adoption assistance
Why do increases in company profitability often increase in proportion to payroll expenses?
Because payroll represents the activity of the business. The higher profitability often reflects an increase in labor expenses.
Cronin Computers had $987,950 of annual payroll taxes during the lookback period. The firm pays its employees biweekly on Tuesdays. Assuming that no payday has a tax liability in excess of $100,000, when are the payroll tax deposits due?
By Friday of the current week
Which of the following is not a post-tax deduction?
Employee contributions to 401(k) plans
Under the unsafe conditions rule:
Employees pay $1.50 for the one-way commute.
What are hallmarks of Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs)?
FSA's expire on an annual basis but HSA's continue perpetually
It is important that the payroll accountant remember their __________ duty, according to Current Tax Payment Act of 1943.
Fiduciary
Which of the following best describes the purpose of the employee earnings record?
It is an individual register maintained for each employee, listing of all the payroll information.
What is a limit on garnishments for personal bankruptcy?
It must be the lower 25% of disposable income or 30 times the weekly income over federal minimum wage.
If a firm accrues the payroll due but not paid at the end of a financial period, what should the payroll accountant do on the first day of the next financial period?
It should create a reversing entry in the General Journal.
Fringe benefit values must be decided by __________.
January 31 of the next year
The __________ report assists managers with allocation of labor to company departments.
Labor Usage
Alec is an employee who drives a 2021 Ford C-Max with a fair-market value of $32,000. The lease value is $8,750, according to Publication 15-b. Alec drove 30,258 miles, 7,552 of it was for personal use. All gasoline was provided by the employer and the amount for personal use was charged back to Alec at $0.055 per mile. The car was available for 175 days during the year. What method and valuation will yield the lowest fringe-benefit amount for Alec? (Do not round intermediate calculations, only round final answer to two decimal points.)
Lease-value, $1,462.43
De minimis fringe benefits include__________.
Non-cash, low-value birthday gifts
The payroll register and employee earnings records form the link between accounting and the human resources department.
True
If a fringe benefit is an investment when does the investment transfer occur?
When the amount of the employee contribution is withheld
True about excluded fringe benefits
excluded fringe benefits are generally reported on the employee's w2
Employers match all taxes withheld from employee pay.
false
The purpose of the gross pay and year-to-date net pay columns in the payroll register is to verify the accurate disbursal of payroll amounts.
false
Garnishments may include deductions on post tax basis for items such as
federal tax leins
A column used in the payroll register to compute net pay may include which of the following?
garnishments
The purpose of the __________ is to record all the financial transactions of a firm.
general journal
