Exam 16: Specimen Financial Statements: the Coca-Cola Company

Ann Hech's regular hourly wage is $18 an hour. She receives overtime pay at the rate of time and a half. The FICA tax rate is 7.65%. Ann is paid every two weeks. For the first pay period in January, Ann worked 86 hours of which 6 were overtime hours. Ann's federal income tax withholding is $400 and her state income tax withholding is $170. Ann has authorized that $50 be withheld from her check each pay period for savings bonds. Instructions Compute Ann Hech's gross earnings and net pay for the pay period showing each payroll deduction in arriving at net pay.

An employee's payroll check is distributed by the

The state unemployment tax rate is usually 5.4% on the first $7,000 of wages paid to an employee during the year.

A good internal control feature is to have a written hiring authorization form completed before a new employee is added to the payroll.

The tax that is paid equally by the employer and employee is the

Which of the following is not performed by the payroll department?

The employer incurs a payroll tax expense equal to the amount contributed by each employee for ______________ taxes.

Which one of the following payroll taxes does not result in a payroll tax expense for the employer?

Changes in pay rates during employment should be authorized by the

Assume that the payroll records of Erroll Oil Company provided the following information for the weekly payroll ended November 30, 2018. Additional information: All employees are paid overtime at time and a half for hours worked in excess of 40 per week. The FICA tax rate is 7.65% for the first $117,000 of each employee's annual earnings and 1.45% in excess of $117,000. The employer pays unemployment taxes of 6.2% (5.4% for state and .8% for federal) on the first $7,000 of each employee's annual earnings. Instructions (a) Prepare the payroll register for the pay period. (b) Prepare general journal entries to record the payroll and payroll taxes.

Which one of the following payroll taxes is not withheld from the employee's wages because it is not levied on the employee?

An employee's time card is used to record the number of exemptions claimed by the employee for income tax withholding purposes.

The employer incurs a payroll tax expense equal to the amount withheld from the employees' wages for federal income taxes.

Control over timekeeping does not include

A Wage and Tax Statement shows gross earnings, FICA taxes withheld, and income taxes withheld for the year.

FICA taxes withheld and federal income taxes withheld are mandatory payroll deductions.

Diane Lane earns a salary of $9,900 per month during the year. FICA taxes are 7.65% on the first $117,000 of gross earnings and 1.45% in excess of $117,000. Federal unemployment insurance taxes are 6.2% of the first $7,000; however, a credit is allowed equal to the state unemployment insurance taxes of 5.4% on the $7,000. During the year, $32,300 was withheld for federal income taxes and $6,700 was withheld for state income taxes. Instructions (a) Prepare a journal entry summarizing the payment of Lane's total salary during the year. (b) Prepare a journal entry summarizing the employer payroll tax expense on Lane's salary for the year. (c) Determine the cost of employing Lane for the year.

Two federal taxes which are levied against employees' wages that must be deducted in arriving at net pay are (1) ________________ taxes and (2) _______________ taxes.

Lucie Ball's regular rate of pay is $15 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week. She worked 48 hours last week. Therefore, her gross wages were

The following payroll liability accounts are included in the ledger of Clementine Company on January 1, 2018: In January, the following transactions occurred: Jan. 9 Sent a check for $5,000 to Blue Cross and Blue Shield. 11 Deposited a check for $5,600 in Federal Reserve Bank for FICA taxes and federal income taxes withheld. 14 Sent a check for $400 to the union treasurer for union dues. 18 Paid state income taxes withheld from employees. 21 Paid state and federal unemployment taxes. 22 Purchased U. S. Savings Bonds for employees by writing a check for $1,000. Instructions Journalize the January transactions