Question 1

Which of the following is not an expense of the employer?

Accepted Answer

A)  FUTA tax 
B)  FICA tax-HI 
C)  FICA tax-OASDI 
D)  SUTA tax 
E)  Union dues withheld 
A)  FUTA tax 
B)  FICA tax-HI 
C)  FICA tax-OASDI 
D)  SUTA tax 
E)  Union dues withheld E

Question 2

Tips received by employees in excess of tip credit amount are not included as disposable earnings subject to garnishment

Accepted Answer

A) True 
 B)False  True

Question 3

When the federal tax deposit is made, the employees' and employer's shares of FICA taxes are paid along with the employees' FIT taxes withheld.

Accepted Answer

A) True 
 B)False  True

Question 4

When union dues that have been withheld from employees' wages are turned over to the union treasurer, the account Union Dues Payable is debited.

Accepted Answer

A) True 
 B)False

Question 5

In order to prepare Forms W-2, an employer would utilize the employee's earnings record.

Accepted Answer

A) True 
 B)False

Question 6

At the time of depositing FICA taxes and employees' federal income taxes, the account FICA Tax Expense is debited for both the employees' and the employer's portions of the FICA taxes.

Accepted Answer

A) True 
 B)False

Question 7

In the case of multiple wage attachments, a garnishment for a student loan has priority over any other garnishment.

Accepted Answer

A) True 
 B)False

Question 8

The garnishment that takes priority over all others is :

Accepted Answer

A)  a federal tax levy 
B)  a government student loan 
C)  a creditor garnishment 
D)  an administrative wage garnishment 
E)  a child support order 
A)  a federal tax levy 
B)  a government student loan 
C)  a creditor garnishment 
D)  an administrative wage garnishment 
E)  a child support order

Question 9

The employer's payroll tax expenses are recorded by all employers at the time these taxes are actually paid.

Accepted Answer

A) True 
 B)False

Question 10

In the case of an unclaimed paycheck, the employer can hold the check indefinitely until the employee or heirs claim the paycheck.

Accepted Answer

A) True 
 B)False

Question 11

When recording the deposit of FUTA taxes owed, the proper entry is:

Accepted Answer

A)  FUTA Tax Expense      Cash 
B)  Payroll Taxes      Cash 
C)  Payroll Taxes      FUTA Taxes Payable 
D)  FUTA Taxes Payable      Cash 
E)  FUTA Tax Expense      FUTA Taxes Payable 
A)  FUTA Tax Expense      Cash 
B)  Payroll Taxes      Cash 
C)  Payroll Taxes      FUTA Taxes Payable 
D)  FUTA Taxes Payable      Cash 
E)  FUTA Tax Expense      FUTA Taxes Payable

Question 12

Companies usually provide a separate column in the payroll register to record the employer's payroll taxes.

Accepted Answer

A) True 
 B)False

Question 13

The FUTA tax part of the payroll tax entry is recorded at the net amount (0.6%) of the taxable payroll.

Accepted Answer

A) True 
 B)False

Question 14

Union Dues Payable is a liability account credited with the deductions made from union members' wages for their union dues.

Accepted Answer

A) True 
 B)False

Question 15

In calculating overtime premium earnings at one and a half times the regular hourly rate, the overtime hours are multiplied by one-half the hourly rate of pay.

Accepted Answer

A) True 
 B)False

Question 16

An employer will use the payroll register to keep track of an employee's accumulated wages.

Accepted Answer

A) True 
 B)False

Question 17

The payroll taxes incurred by an employer are FICA, FUTA, and SUTA.

Accepted Answer

A) True 
 B)False

Question 18

For the purpose of a federal tax levy, the IRS defines take-home pay as the gross pay less taxes withheld and the other payroll deductions in effect before the tax levy was received.

Accepted Answer

A) True 
 B)False

Question 19

Each payday, the total of net pays that the employer incurs is the wage expense that must be debited.

Accepted Answer

A) True 
 B)False

Question 20

Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday?

Accepted Answer

A)  Payroll Taxes 
B)  Federal Income Taxes Payable 
C)  Wages Expense 
D)  Salaries Payable 
E)  None of the above 
A)  Payroll Taxes 
B)  Federal Income Taxes Payable 
C)  Wages Expense 
D)  Salaries Payable 
E)  None of the above

Which of the following is not an expense of the employer?

Tips received by employees in excess of tip credit amount are not included as disposable earnings subject to garnishment

When the federal tax deposit is made, the employees' and employer's shares of FICA taxes are paid along with the employees' FIT taxes withheld.

When union dues that have been withheld from employees' wages are turned over to the union treasurer, the account Union Dues Payable is debited.

In order to prepare Forms W-2, an employer would utilize the employee's earnings record.

At the time of depositing FICA taxes and employees' federal income taxes, the account FICA Tax Expense is debited for both the employees' and the employer's portions of the FICA taxes.

In the case of multiple wage attachments, a garnishment for a student loan has priority over any other garnishment.

The garnishment that takes priority over all others is :

The employer's payroll tax expenses are recorded by all employers at the time these taxes are actually paid.

In the case of an unclaimed paycheck, the employer can hold the check indefinitely until the employee or heirs claim the paycheck.

When recording the deposit of FUTA taxes owed, the proper entry is:

Companies usually provide a separate column in the payroll register to record the employer's payroll taxes.

The FUTA tax part of the payroll tax entry is recorded at the net amount (0.6%) of the taxable payroll.

Union Dues Payable is a liability account credited with the deductions made from union members' wages for their union dues.

In calculating overtime premium earnings at one and a half times the regular hourly rate, the overtime hours are multiplied by one-half the hourly rate of pay.

An employer will use the payroll register to keep track of an employee's accumulated wages.

The payroll taxes incurred by an employer are FICA, FUTA, and SUTA.

For the purpose of a federal tax levy, the IRS defines take-home pay as the gross pay less taxes withheld and the other payroll deductions in effect before the tax levy was received.

Each payday, the total of net pays that the employer incurs is the wage expense that must be debited.

Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday?

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Unemployment Compensation Taxes

Filters

Exam 6: Analyzing and Journalizing Payroll

Which of the following is not an expense of the employer?

Tips received by employees in excess of tip credit amount are not included as disposable earnings subject to garnishment

When the federal tax deposit is made, the employees' and employer's shares of FICA taxes are paid along with the employees' FIT taxes withheld.

When union dues that have been withheld from employees' wages are turned over to the union treasurer, the account Union Dues Payable is debited.

In order to prepare Forms W-2, an employer would utilize the employee's earnings record.

At the time of depositing FICA taxes and employees' federal income taxes, the account FICA Tax Expense is debited for both the employees' and the employer's portions of the FICA taxes.

In the case of multiple wage attachments, a garnishment for a student loan has priority over any other garnishment.

The garnishment that takes priority over all others is :

The employer's payroll tax expenses are recorded by all employers at the time these taxes are actually paid.

In the case of an unclaimed paycheck, the employer can hold the check indefinitely until the employee or heirs claim the paycheck.

When recording the deposit of FUTA taxes owed, the proper entry is:

Companies usually provide a separate column in the payroll register to record the employer's payroll taxes.

The FUTA tax part of the payroll tax entry is recorded at the net amount (0.6%) of the taxable payroll.

Union Dues Payable is a liability account credited with the deductions made from union members' wages for their union dues.

In calculating overtime premium earnings at one and a half times the regular hourly rate, the overtime hours are multiplied by one-half the hourly rate of pay.

An employer will use the payroll register to keep track of an employee's accumulated wages.

The payroll taxes incurred by an employer are FICA, FUTA, and SUTA.

For the purpose of a federal tax levy, the IRS defines take-home pay as the gross pay less taxes withheld and the other payroll deductions in effect before the tax levy was received.

Each payday, the total of net pays that the employer incurs is the wage expense that must be debited.

Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday?

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Unemployment Compensation Taxes

Filters