Question 1

For which of the following taxes is there a ceiling on the amount of employee annual earnings subject to the tax?

Accepted Answer

A) Federal unemployment taxes 
B) State unemployment taxes 
C) FICA-OASDI 
D) All of these answers are correct. 
A) Federal unemployment taxes 
B) State unemployment taxes 
C) FICA-OASDI 
D) All of these answers are correct. D

Question 2

Carl's earnings during the month of March were $6,200.His earnings for the year prior to March were $5,600.Carl's employer is subject to federal unemployment taxes of 0.8% and state unemployment taxes of 5.4% on the first $7,000.The employer's unemployment payroll tax expense for Carl in the month of March is:

Accepted Answer

A) $4.96. 
B) $86.80. 
C) $496.00. 
D) $0.49. 
A) $4.96. 
B) $86.80. 
C) $496.00. 
D) $0.49. B

Question 3

Bob's earnings during the month of June were $1,100.His earnings for the year prior to June were $15,300.Bob's employer is subject to state unemployment of 2.0% and federal unemployment taxes of 0.6% on the first $7,000.The employer's unemployment payroll tax expense for June is:

Accepted Answer

A) $8.80. 
B) $22.00. 
C) $0. 
D) $30.80. 
A) $8.80. 
B) $22.00. 
C) $0. 
D) $30.80. C

Question 4

Valerie Johnson works 42 hours as a coffee barista and earns $15 per hour.Compute her weekly pay assuming an overtime rate of 1.5.

Accepted Answer

A) $552 
B) $645 
C) $480 
D) $624 
A) $552 
B) $645 
C) $480 
D) $624

Question 5

Payroll taxes include all of the following except:

Accepted Answer

A) federal income tax. 
B) state income tax. 
C) FICA-OASDI. 
D) All of the above are payroll taxes. 
A) federal income tax. 
B) state income tax. 
C) FICA-OASDI. 
D) All of the above are payroll taxes.

Question 6

Kate's earnings during the month of May were $1,200.Her earnings for the year prior to May were $12,300.Kate's employer is subject to state unemployment of 2.0% and federal unemployment taxes of 0.8% on the first $7,000.The employer's unemployment payroll tax expense for May is:

Accepted Answer

A) $10.40. 
B) $26.00. 
C) $0. 
D) $36.40. 
A) $10.40. 
B) $26.00. 
C) $0. 
D) $36.40.

Question 7

The amount of federal income tax withheld from an employee during the year is determined by the employee's:

Accepted Answer

A) W-4 form. 
B) W-2 form. 
C) 1040 form. 
D) all of these answers are correct. 
A) W-4 form. 
B) W-2 form. 
C) 1040 form. 
D) all of these answers are correct.

Question 8

FUTA and SUTA are paid for exclusively by the employer.

Accepted Answer

A) True 
 B)False

Question 9

Given the following payroll items you are to identify whether they are the responsibility of the employer and/or the employee by placing an X in the appropriate column.
-$$\begin{array} { | l | l | l | } 
\hline & \text { Employer } & \text { Employee } \
\hline \text { State income tax } & & \
\hline
\end{array}$$

Accepted Answer

The answer of Given the following payroll items you are...

Question 10

Given the following payroll items you are to identify whether they are the responsibility of the employer and/or the employee by placing an X in the appropriate column.
-$$\begin{array} { | l | l | l | } 
\hline & \text { Employer } & \text { Employee } \
\hline \text { Gross wages } & & \
\hline
\end{array}$$

Accepted Answer

The answer of Given the following payroll items you are...

Question 11

Dave Brown's cumulative earnings are $73,000,and his gross pay for the week is $6,200.If the FICA rates are: OASDI 6.2% on a limit of $117,000 and Medicare is 1.45%,what are his FICA-OASDI and FICA-Medicare taxes for the week?

Accepted Answer

A) $0;$89.90 
B) $384.00;$0 
C) $384.40;$89.90 
D) $3,844;$899.00 
A) $0;$89.90 
B) $384.00;$0 
C) $384.40;$89.90 
D) $3,844;$899.00

Question 12

Gross Earnings are the same as:

Accepted Answer

A) regular earnings only. 
B) regular earnings + overtime earnings. 
C) net earnings. 
D) net earnings + overtime earnings. 
A) regular earnings only. 
B) regular earnings + overtime earnings. 
C) net earnings. 
D) net earnings + overtime earnings.

Question 13

FICA (OASDI and Medicare)and unemployment taxes are similar in that they:

Accepted Answer

A) are paid by the employee. 
B) have the same maximum taxable wage base. 
C) are a specified percent of federal income tax withholdings. 
D) are payroll tax expenses of the employer. 
A) are paid by the employee. 
B) have the same maximum taxable wage base. 
C) are a specified percent of federal income tax withholdings. 
D) are payroll tax expenses of the employer.

Question 14

Bob's Auction House's payroll for April includes the following data:
 
What is the employee's portion of the taxes?

Accepted Answer

A) $1,057.60 
B) $1,001.60 
C) $257.60 
D) $800.00 
A) $1,057.60 
B) $1,001.60 
C) $257.60 
D) $800.00

Question 15

There are two parts to FICA:

Accepted Answer

A) old age benefits and workers' compensation. 
B) retirement and income tax withholdings. 
C) OASDI and Medicare. 
D) defined pension and Medicare. 
A) old age benefits and workers' compensation. 
B) retirement and income tax withholdings. 
C) OASDI and Medicare. 
D) defined pension and Medicare.

Question 16

Bill James earned $800 for the week.If his cumulative earnings are $30,000 prior to this pay period,how much FICA-OASDI must his employer withhold from his earnings? FICA tax rates are OASDI 6.2% on a limit of $117,000.

Accepted Answer

A) $496.00 
B) $4.96 
C) $49.60 
D) None of the above is correct. 
A) $496.00 
B) $4.96 
C) $49.60 
D) None of the above is correct.

Question 17

A work week is 180 hours in length.

Accepted Answer

A) True 
 B)False

Question 18

To examine in detail the weekly payroll of all employees,one would look at the:

Accepted Answer

A) W-2. 
B) W-4. 
C) payroll register. 
D) employee earnings record. 
A) W-2. 
B) W-4. 
C) payroll register. 
D) employee earnings record.

Question 19

Workers' compensation:

Accepted Answer

A) insures employees against losses they may incur due to injury or death while on the job. 
B) is based on the total estimated gross payroll. 
C) is paid for by the employer. 
D) All of the above are correct. 
A) insures employees against losses they may incur due to injury or death while on the job. 
B) is based on the total estimated gross payroll. 
C) is paid for by the employer. 
D) All of the above are correct.

Question 20

Workers' compensation provides insurance for employees who are:

Accepted Answer

A) unemployed due to an economic downturn. 
B) unemployed due to a plant closing. 
C) injured while on the job. 
D) injured while at home. 
A) unemployed due to an economic downturn. 
B) unemployed due to a plant closing. 
C) injured while on the job. 
D) injured while at home.

Exam 7: Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

For which of the following taxes is there a ceiling on the amount of employee annual earnings subject to the tax?

Bob's earnings during the month of June were $1,100.His earnings for the year prior to June were $15,300.Bob's employer is subject to state unemployment of 2.0% and federal unemployment taxes of 0.6% on the first $7,000.The employer's unemployment payroll tax expense for June is:

Valerie Johnson works 42 hours as a coffee barista and earns $15 per hour.Compute her weekly pay assuming an overtime rate of 1.5.

Payroll taxes include all of the following except:

Kate's earnings during the month of May were $1,200.Her earnings for the year prior to May were $12,300.Kate's employer is subject to state unemployment of 2.0% and federal unemployment taxes of 0.8% on the first $7,000.The employer's unemployment payroll tax expense for May is:

The amount of federal income tax withheld from an employee during the year is determined by the employee's:

FUTA and SUTA are paid for exclusively by the employer.

Given the following payroll items you are to identify whether they are the responsibility of the employer and/or the employee by placing an X in the appropriate column. - Employer Employee State income tax

Given the following payroll items you are to identify whether they are the responsibility of the employer and/or the employee by placing an X in the appropriate column. - Employer Employee Gross wages

Dave Brown's cumulative earnings are $73,000,and his gross pay for the week is $6,200.If the FICA rates are: OASDI 6.2% on a limit of $117,000 and Medicare is 1.45%,what are his FICA-OASDI and FICA-Medicare taxes for the week?

Gross Earnings are the same as:

FICA (OASDI and Medicare)and unemployment taxes are similar in that they:

Bob's Auction House's payroll for April includes the following data: What is the employee's portion of the taxes?

There are two parts to FICA:

Bill James earned $800 for the week.If his cumulative earnings are $30,000 prior to this pay period,how much FICA-OASDI must his employer withhold from his earnings? FICA tax rates are OASDI 6.2% on a limit of $117,000.

A work week is 180 hours in length.

To examine in detail the weekly payroll of all employees,one would look at the:

Workers' compensation:

Workers' compensation provides insurance for employees who are:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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