Exam 10: Payroll Computations, Records, and Payment

The monthly salaries for December and the year-to-date earnings as of November 30 for the three employees of the Barbara's Bookstore,Inc.are listed below.Compute the amount of social security tax and Medicare tax to be withheld from each of the employee's gross pay for December.Assume a 6.2 percent social security tax rate and a base of $113,700 for the calendar year.Assume a 1.45 percent Medicare tax rate.

Withholding for federal income taxes places employees on a pay-as-you-go basis.

The column totals in a payroll register

FICA tax is commonly referred to as ____________________ tax.

Salespeople who are paid a percentage of net sales are paid on a(n)

The overtime rate is one and one-half times the regular hourly rate.

Social Security taxes are paid by:

The employee's marital status is one factor that determines the amount of federal income tax withheld by the employer.

The Burns Company has two office employees and two shipping employees.A summary of their earnings and deductions for the week ended August 23,2016,is shown below.On page 10 of a general journal,record the August 23 payroll and the entry to summarize the effect of the checks written to pay the payroll.

An employee whose regular hourly rate is $20 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week.In the payroll register,the employer should record an overtime premium of

Identify the list of accounts below that would normally all have a credit balance.

During the week ended April 26,2016,Andy Tyler worked 40 hours.His regular hourly rate is $15.Assume that his earnings are subject to social security tax at a rate of 6.2 percent and Medicare tax at a rate of 1.45 percent.He also has deductions of $31 for federal income tax and $21 for health insurance. A)What is his gross pay for the week? B)What is the total of his deductions for the week? C)What is his net pay for the week?

Which of the following statements is not correct?

Publication 15,Circular E contains federal income tax withholding tables.

During the week ended February 8,2016,Stuart Wayne worked 40 hours.His regular hourly rate is $10.Assume that his earnings are subject to social security tax at a rate of 6.2 percent and Medicare tax at a rate of 1.45 percent.He also has deductions of $31 for federal income tax and $21 for health insurance. A)What is his gross pay for the week? B)What is the total of his deductions for the week? C)What is his net pay for the week?

An employee whose regular hourly rate is $10 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week.In the payroll register,the employer should record an overtime premium of

Assuming a Medicare tax rate of 1.45% and monthly gross wages of $2,500,the amount recorded in Medicare Tax Payable for one quarter for the employee's payroll deduction is

Time sheets or time cards are used to keep a record of hours worked each day by each employee paid on an hourly basis.

The Rollins Company has office employees and shipping employees.A summary of their earnings and deductions for the week ended June 14,2016,is shown below.On page 6 of a general journal,record the June 14 payroll and the entry to summarize the effect of the checks written to pay the payroll.

During one week,three employees of the Snowshoe Lodge worked the number of hours shown below.All these employees receive overtime pay at one and a half times their regular hourly rate for any hours worked beyond 40 in a week.Compute the regular earnings,overtime earnings,and gross pay for each employee.