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

Explain what is meant by the cumulative gross earnings.

Daryn's cumulative earnings before this pay period were $5,450,and gross for the week is $700.Assuming the wage base limit is $7,000,how much of this week's pay is subject to taxes for SUTA and FUTA?

Under the Fair Labor Standards Act,for any hours that an employee works over 40 during a work week:

The taxable earnings column of the payroll register records the tax due.

Brian Temple's cumulative earnings are $107,000,and his gross pay for the week is $5,300.If the FICA rates are: OASDI 6.2% on a limit of $106,800 and Medicare is 1.45%,what are his FICA-OASDI and FICA-Medicare taxes for the week?

Most employers are levied a payroll tax for:

Gross Earnings are the same as:

The individual employee earnings record provides a summary of the following for a single employee,except:

Explain the purpose of workers' compensation,and discuss the premium cost to the employer.

The employer's payroll taxes are deducted from the employee's paycheck.

Compute the net pay for each employee listed below.Assume the following rates: FICA-OASDI 6.2% on a limit of $106,800; Medicare is 1.45%; federal income tax is 20%; state income tax is 5%; and union dues are $10. Cumulative Pay This Week's Pay Tim Bryant \1 05,000 \5 ,000 Bornie Riley 60,000 3,000

The Federal Insurance Contributions Act is better known as:

Kristin's cumulative earnings before this pay period were $7,200 and gross pay for the week is $900.Assuming the wage base limit is $7,000,how much of this week's pay is subject to taxes for FUTA and SUTA?

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

A calendar year is:

Sue's jewelry Shoppe's July payroll includes the following data: Gross salaries \ 12,000 Salaries subject to FICA: 12,000 6.2\% Social Security 12,000 1.45\% Medicare Salaries subject to: 6,000 FUTA 0.8\% 6,000 SUTA 2.7\% 1200 The employer's payroll tax for the period would be:

Generally,employers can take a credit against the FUTA tax for contributions paid into the state unemployment funds.

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

An employer can reduce the federal unemployment tax rate by paying the state unemployment tax on time.

The cost of workers' compensation insurance must be estimated and paid in advance by the employer.