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

Kate's earnings during the month of May were $1,200. Her earnings for the year prior to May were $12,300. Jake'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:

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

Which report would an employer review if they wanted to check how much an employee has earned to date?

Carrie Stein's hourly wage is $40.00, and she worked 42 hours during the week. Assuming an overtime rate of time and a half over 40 hours, Carrie's gross pay is:

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

Both employees and employers pay which of the following taxes?

To have less money withheld from your paycheck, an employee can claim more allowances than they actually have.

From the following data, determine the FUTA tax liability for Evans Company for the first quarter. The FUTA tax rate is 0.8% on the first $7,000 of earnings. (Assume all quarters have 13 weeks.)

A company can deem an employee as salaried:

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

A maximum limit is set for all FICA taxes.

Which tax does not have a wage base limit?

The payroll register:

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. -

A W-4 form:

Brian Temple's cumulative earnings are $102,000, 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?

The law that governs overtime earnings is called:

Net pay equals:

Derek works 43 hours at a rate of pay of $15 per hour. He receives double pay over 40 hours. What is his gross pay?

When an employee's earnings are greater than FICA base limit during the calendar year, no more FICA-OASDI tax is deducted from earnings.