mcgraw hill 6

Caldetta Incorporated has 3 departments distributed as: 8 in sales, 6 in administration, and 14 in janitorial. Their total payroll cost is $42,000. What is the departmental classification breakdown? Multiple choice question. $14,000 sales; $14,000 administration; $14,000 janitorial $12,000 sales; $9,000 administration; $21,000 janitorial $42,000 each $12,000 each

$12,000 sales; $9,000 administration; $21,000 janitorial

What is the maximum wage that Social Security taxes are withheld from? Multiple choice question. $137,700 $185,000 $171,000 $200,000

$137,700

Calculate the total (both employee and employer share) Social Security liability on Michael. He has earned $114,250 year to date and his current pay is $4,250

$527.00

Amanda made $1,240 on her current paycheck after pre-tax deductions. Assuming the entire $1,240 is subject to FICA, what is her portion of the FICA tax?

$94.86

If an employee has earned $135,400, which boxes will report lower wages on the W-2?

1 3

Which of the following is an employer's payroll responsibility? Multiple select question. Employee compensation tax Compare taxes with other companies Tax withholding and remittance

1 3

ypical costs of having employees include: Multiple select question. wages utilities telephone recruitment training

145

Labor distribution reports would show Multiple select question. number of employers time worked number of employees overtime not used

2, 3,

Which of the following would increase the compensation of an employee? Multiple select question. 401(k) match by employer 401(k) contribution by employee health insurance paid by employer employee withholding allowances

401(k) match by employer health insurance paid by employer

Due to the COVID-19 outbreak, employers were allowed to defer ____percent of their share of Social Security taxes.

50

The amount the employer generally remits to the federal government for FUTA taxes is _____ percent.

6

What is the unadjusted FUTA rate? Multiple choice question. 0.6% .06% 6% 5.4%

6

Many companies pay between _____ and _____ percent of employee health insurance premiums.

70 100

EFTPS is used to deposit Form______ and Form ______ taxes

941 940

The annual compensation report provides Multiple choice question. An overview of the labor costs for a company. A breakdown of the total employer cost per employee. A detailed analysis of employee costs. A graphic representation of the total cost of all employees.

A detailed analysis of employee costs.

Which of the following is an employer-only tax? Multiple choice question. California Employment Training Tax Maryland Competitive Skills Scholarship Tax Denver Occupational Privilege Tax

California Employment Training Tax

Boxes 10, 11, and 12 on the W-2 are used for which of the following situations: Multiple select question. Dependent care benefits Retirement plan contributions Tipped employee income

Dependent care benefits Retirement plan contributions

Which of the following are employee benefits that would appear on the annual total compensation report? Multiple select question. Employer-paid gym memberships Company-provided awards Employee-paid on-site meals

Employer-paid gym memberships Company-provided awards

Which of the following is true about the employer responsibility for payroll taxes? (Check all that apply). Multiple select question. Employers match the 1.45% withheld for Medicare tax for all employees. Social Security tax is matched by the employer up to the Social Security wage base. Employers match the additional Medicare tax for highly compensated employees.

Employers match the 1.45% withheld for Medicare tax for all employees. Social Security tax is matched by the employer up to the Social Security wage base.

Examples of employee payroll-related liabilities include: Multiple select question. FICA taxes SUTA taxes Union dues FUTA taxes Garnishments Federal income tax

FICA taxes Union dues Garnishments Federal income tax

What are identified as statutory deductions? Multiple select question. Charitable Contributions Federal Income Taxes Union Dues Social Security Taxes

Federal Income Taxes Social Security Taxes

Which professions are exempt from FUTA taxes? Multiple select question. Lawyers Federal employees Corporate officers Agricultural workers

Federal employees Agricultural workers

EFTPS is for the payment of which tax(es)? Multiple select question. Federal withholding taxes Federal Unemployment taxes State withholding taxes FICA taxes

Federal withholding taxes Federal Unemployment taxes FICA taxes

The W-2 reflects what type of wages? Multiple choice question. All gross wages earned Gross wages less deductions Gross wages less pre-tax deduction Federal wages earned

Gross wages less pre-tax deduction

Which of the following would reduce gross wages? Multiple select question. Health insurance Union dues Unqualified retirement plans Charitable contributions Contributions to 401(k)

Health insurance Contributions to 401(k)

Which challenges do employers face when offering employee benefits? Multiple select question. Maintaining company profitability. Reducing employee turnover. Increasing employee turnover. Promoting employee engagement.

Maintaining company profitability. Reducing employee turnover. Promoting employee engagement.

Which of the following are payroll tax deposit frequencies? Select all that apply.

Monthly Quarterly Semiweekly

What causes reductions in the employer's FUTA rate? Multiple choice question. On time FUTA deposits On time SUTA deposits Company is a large employer State qualifies for credit reduction

On time SUTA deposits

Which of the following impact employee benefits? Multiple select question. Paid time off Employee federal withholding Health insurance costs Holiday pay

Paid time off Health insurance costs Holiday pay

Which of the following are true about worker's compensation premiums? Multiple select question. Premiums vary based on employee job classifications. Employees contribute amounts based on their annual salary. Annual premiums are paid based on payroll estimates. They are expressed as amounts per $100 of payroll per job classification.

Premiums vary based on employee job classifications. Annual premiums are paid based on payroll estimates. They are expressed as amounts per $100 of payroll per job classification.

Which of the following are ways an employer could minimize their SUTA tax rate? Multiple select question. Review the SUTA account regularly Review employee separation documentation. Continue using multiple seasonal or temporary jobs.

Review the SUTA account regularly Review employee separation documentation.

What are the components of FICA tax? Multiple select question. Federal Withholding Social Security Federal Unemployment Medicare

Social Security Medicare

What contributes to the SUTA rate deduction? Multiple select question. Employee demographics State unemployment rates Company experience rating State credit reduction status

State unemployment rates Company experience rating

Which of the following are not statutory deductions? Multiple select question. Medicare Taxes Supplemental Insurance Federal Income Tax Union Dues

Supplemental Insurance Union Dues

When an employee earns less than $7,000 during the calendar year, the employer is responsible for how much FUTA tax? Multiple choice question. The full amount of the FUTA tax The FUTA rate applied to the employee's earnings during their employment. The FUTA rate applied to the employee's earnings during the portion of the calendar year worked.

The FUTA rate applied to the employee's earnings during the portion of the calendar year worked.

Under what circumstances will the IRS waive penalties for filing, inaccuracy, and deposit issues (select all that apply)? Multiple select question. The company outsources its payroll and the error was made by the external preparer The amount of the discrepancy does not exceed $100 or 2% (whichever is greater) of the required deposit The amount of the shortfall is deposited by either the due date of the period return or by the semiweekly deposit due date.

The amount of the discrepancy does not exceed $100 or 2% (whichever is greater) of the required deposit The amount of the shortfall is deposited by either the due date of the period return or by the semiweekly deposit due date.

If a state fails to repay a federal loan made to meet unemployment liabilities, what are the consequences (select all that apply)? Multiple select question. The credit taken against the 6.0% base rate may be reduced The credit will continue to be reduced on the third and fifith year until the loan is repayed The state must reduce the amount of unemployment insurance money available

The credit taken against the 6.0% base rate may be reduced The credit will continue to be reduced on the third and fifith year until the loan is repayed

Electronic tax deposits are required to be processed through: Multiple choice question. EFTPS ETPSF ETPFS FETPS

a

Form 940 is due by Multiple choice question. January 31 of the subsequent year January 1 of the subsequent year February 15 of the subsequent year January 15 of the subsequent year

a

How does payroll data help employers analyze payroll costs? Multiple choice question. It facilitates the analysis of benefit offered and strategic advantage. It highlights areas for cost reduction or benefit withdrawal. It allows companies to reduce costs and promote employee engagement.

a

The purpose of the W-3 is: Multiple choice question. summarize total W-2 data summarize employee hours transmit tax remittance data reconcile employer tax deposits

a

Which of the following is a significant factor in determining SUTA rates? Multiple choice question. Employee retention rate Employer tax payments Employer creditworthiness

a

Benefit analysis provides employers Multiple select question. a check on the profitability of a department budgetary needs per employee a chance to balance employee retention

a check on the profitability of a department a chance to balance employee retention

Departmental classification provides for: (Check all that apply). Multiple select question. accurate labor cost distribution per employee allocation across departments equal allocation across departments disproportional allocation across employees

accurate labor cost distribution per employee allocation across department

Departmental classification provides for: (Check all that apply). Multiple select question. accurate labor cost distribution disproportional allocation across employees per employee allocation across departments equal allocation across departments

accurate labor cost distribution per employee allocation across departments

A tax deposit frequency is Multiple choice question. biweekly monthly semimonthly

b

An electronically filed W-3, and accompanying W-2 copies, should be submitted by: Multiple choice question. March 15 January 31 March 31 February 28

b

Cato Electronics, headquartered in Denver, Colorado has 10 employees. The Occupational Privilege Tax (OPT) for Denver is $4.00 per employee to be paid by the employer. What is the OPT for Cato Electronics? Multiple choice question. $57.40 $40.00 $97.50 $80.00

b

What is the maximum tax liability for Form 944? Multiple choice question. $2,000 annually $2,500 annually $2,500 quarterly $2,500 monthly

b

What may cause the Social Security wages reported to be different than the Medicare wages? Multiple choice question. pretax deductions earnings over $137,700 earnings under $117,000 earnings over $200,000

b

When reporting payroll taxes using Schedule B, on what date should the employer place the tax liability amount? Multiple choice question. Deposit date Pay date End of month

b

Social Security and Medicare taxes may Multiple choice question. be listed separately when the employer makes the tax deposit. be the same for all employees. be withheld but not remitted.

be listed separately when the employer makes the tax deposit.

The _____ _____report allows a company to measure the cost of each employee.

benefit analysis

Employers may use the annual compensation report for: Multiple choice question. FUTA tax filings SUTA tax filings worker compensation claims benefit cost analysis

benefit cost analysis

A company that fails to files its tax deposits, but does so 16 days late, could be charged ______, the company has not received any notification from the IRS: Multiple choice question. 15% after second IRS notification 10% remitted with tax return 10% for unpaid amounts 15% for unpaid amounts

c

SUTA stands for: Multiple choice question. Senate Unemployment Tax Act State Underemployment Tax Act State Unemployment Tax Act State Unionization Tax Act

c

State tax remittances occur on what schedule? Multiple choice question. Same schedule as federal taxes Varies by tax Varies by state Quarterly

c

The 941 is required to be filed: Multiple choice question. annually daily quarterly weekly

c

The form 940 tax return is for the annual reporting of: Multiple choice question. SUTA taxes Federal withholding tax FUTA taxes FICA taxes

c

The frequency of depositing payroll taxes depends on Multiple choice question. the company's credibility with the IRS the length of time the company has been in business. the size of the employer's payroll.

c

The payroll accountant may perform the following duties Multiple choice question. determining the overhead amount for costing. reporting on workforce efficiency. allocating employee expenses to departments. determining the departmental share of payroll expenses.

c

What is the maximum earnings that an employer will pay FUTA on? Multiple choice question. $6,700 $7,200 $7,000 $6,000

c

Who must file the Schedule B? Multiple choice question. All companies Monthly depositors Semi-weekly depositors Weekly depositors

c

Who would determine when Form 944 should be used? Multiple choice question. Company board of directors IRS website IRS notification Company management

c

The employer's SUTA rate is determined by a mix of state unemployment rates and _____ _____ ratings.

company experience

The W-3 should be submitted with: Multiple choice question. copy A of the W-2 copy B of the W-2 copy 1 of the W-2 copy C of the W-2

copy A of the W-2

The employee will file ______ _____ of the W-2 with his or her federal tax return.

copy b

Employees of what profession must earn less than $1,000 to be exempt from FUTA provisions? Multiple choice question. Real Estate Agent Mechanic Professional Baker Household Employee

d

Labor distribution is: Multiple choice question. the number of employees per job classification the division of labor over the employees the number of employees currently working the number of employees per department

d

The company may be charged a 15% additional penalty for failure to deposit the appropriate amount of payroll-related taxes to the IRS if it: Multiple choice question. remitted less than 5 days after the first notice remitted with tax return remitted 10 days after second notice remitted more than 10 days after first notic

d

The purpose of the 941 is to: Multiple choice question. reconcile paychecks to payroll liabilities correct minor errors in the tax deposit correct major errors in the tax deposit reconcile tax deposits and liabilities

d

Typical pre-employment costs would include: Multiple choice question. training taxes union dues recruitment

d

When the employer has an annual payroll tax liability of less than $2,500, what is their tax deposit schedule? Multiple choice question. Semiweekly Quarterly Monthly Annual

d

Which of the following would be included in the annual compensation report? Multiple select question. employee paid taxes employee earnings charitable contributions employer paid taxes

employee earnings employer paid taxes

FUTA and SUTA are _____ _____taxes in all but three states.

employer only

The employee submits all copies of the W-2 to the Internal Revenue Service.

f

True or false: All states have the same type of taxes?

f

True or false: An employer reporting greater than $100,000 in payroll tax liability can deposit their taxes on the semiweekly schedule day. True false question.

f

The W-2 has two numbered copies. These are for: Multiple choice question. employee's federal tax return filing state, city, or local tax return filing state, federal, or local tax return employer's federal tax return

filing state, city, or local tax return

The SUTA wage base Multiple choice question. fluctuates among states is the same for all states

fluctuates among states

The total tax liability on schedule B must equal line 10 on ._____ _____

form 941

The federal tax designed to assist employees who have lost their job is: Multiple choice question. Social Security FUTA SUTA Medicare

futa

Benchmarking employee compensation compares the company's costs against: Multiple select question. other departments geographic averages dissimilar companies similar companies

geographic averages similar companies

Payroll related expenses: Multiple select question. decide training requirements impacts business profitability assist decision making impacts profitability of a department

impacts business profitability assist decision making impacts profitability of a department

An employer's expenses related to taxes, _____, and _____are an additional cost of having employees.

insurance benefits

The lookback period involves the employer taxes reported prior to ----- ----- of the prior year.

juse 30

If a company outsources its payroll processing, it is still _____ for any late or unremitted payroll taxes.

liable

The frequency of each company's deposits is determined during the _____ _____

lookback period

Which of these states shares the cost of SUTA with the employee? Multiple choice question. Colorado New Jersey Arizona New Mexico

nj

Additional Medicare tax for highly compensated employees is: (Check all that apply).

not matched by the employer

Worker's compensation is another type of _____responsibility paid by the _____

payroll, employer

Employers must understand the total cost of an employee for: Multiple select question. productivity determination budget development profitability land purchases

productivity determination budget development profitability

Departmental classification results in (proportional/disproportional) distribution of wages across departments.

proportional

An annual compensation report: Multiple select question. identifies all benefits paid by employee shows employee productivity shows cost per benefit provided identifies all benefits paid by employer shows total cost per employee

shows cost per benefit provided identifies all benefits paid by employer shows total cost per employee

When contesting a state unemployment claim, an employer should use _____ _____forms.

state issued

True or false: The employer's SUTA rate is affected by the state in which it operates.

t

the W-2 acts as supporting documentation for the_____ _____ reported on forms 941 and 940.

total wages

An employer has additional payroll tax liabilities including _____taxes and worker's _____ insurance

unemployment compensation