Applied Accounting
Hallie's earnings for the pay period are $5,200. Prior to this, she has earned a total of $125,400. If the FICA-OASDI rate is 6.2% for the first $127,200 and the FICA-Medicare rate is 1.45%, how much FICA tax should be withheld for this pay period?
$187.00
Tim earns $16 per hour. He worked 47 hours this pay period and receives time-and-a-half for any hours worked over 40 hours per week. His gross pay is:
$808
4. Prepaid Worker's Compensation Insurance is what type of account?
A) Asset
If Wages and Salaries Payable is debited, what account would most likely be credited?
A) Cash
If an employer owes less than $2,500 for FICA (OASDI and Medicare) and FIT, they can submit taxes due at the same time they submit
A) Form 941.
2. Workers' Compensation Insurance is:
A) paid by the employer to protect the employee against job-related injury or death.
6. The debit amount to Payroll Tax Expense represents:
A) the employer's portion of the payroll taxes.
Why would a company use a separate payroll cash account?
All of the above are correct.
How often is a 940 filed?
B) Annually
4. The employer records deductions from the employee's paycheck:
B) as credits to liability accounts until paid.
1. The employee earnings record:
B) keeps track of an individual employee's payroll history for a calendar year.
5. Wages and Salaries Payable would be used to record:
B) net earnings of the employees not paid.
1.Gross Earnings are the same as:
B) regular earnings + overtime earnings.
6. To compute federal income tax to be withheld:
B) use gross earnings, number of allowances, and marital status.
3. Which tax does not have a wage base limit?
C) FICA-Medicare
8. The amount of FICA-OASDI and FICA-Medicare withheld from the employee's check is determined by the
C) earnings for the period and cumulative earnings.
4. The number of allowances claimed by an employee determines how much will be withheld from their
C) federal income tax.
9. Which report would an employer review if they wanted to check how much an employee has earned to date?
D) A and B.
5. FICA taxes provide funding to the government to pay:
D) All of the above are correct.
2. Payroll taxes include all of the following except
D) All of the above are payroll taxes.
7. Employers pay the following payroll taxes, except:
D) B and C
3. The Federal Insurance Contributions Act is better known as:
D) FICA.
2. Which taxes are considered 941 taxes?
D) None of these answers is correct
3. Form 941 is filed:
D) quarterly.
. Which of the following does NOT apply to both a W-2 and W-3?
Employees use both forms to prepare their personal tax returns.
Employers pay which of the following tax(es)?
FICA (employer portion)
Which of the following payroll taxes does not have maximum wage base?
FICA - Medicare
Form 941 requires the reporting of the following taxes?
FICA and FIT
Pay period end dates and payday dates are always the same.
False
Generally, employers are required to withhold a portion of an employee's wages for all except
Federal unemployment tax
The Employer's Annual Federal Unemployment Tax Return is called
Form 940
The Employer's Annual Federal Unemployment Tax Return. This shows the annual amount of FUTA tax the employer owes for the year.
Form 940
The annual report by an employer to each employee showing the employee's wages subject to FICA and federal income taxes along with withholdings for various taxes.
Form W-2
Which form contains information about gross earnings and is given to the employee by January
Form W-2
Which form is sent to the Social Security Administration along with the W-2s? It reports total wages, FICA tax withheld, etc., for the previous year.
Form W-3
Employers record each employee's gross earnings, employee withholding taxes, net pay, and taxable earnings in:
The payroll register
Employers determine the amount of federal income tax withholdings based on the number of allowances an employee has indicated on form:
W-4
What liability account is reduced when the employees are paid?
Wages and Salaries Payable
The look-back period is used to determine whether:
a business should make its Form 941 tax deposits on a monthly or semiweekly basis
Payroll tax expense is debited to record
the employer's portion of FICA
Businesses are classified as monthly or semi-weekly depositors based on
the look-back period rule
An insurance program that provides benefits to workers who are injured on the job is called
workers' compensation insurance
