Exam 10: Payroll Computations, Records, and Payment

Rick O'Shea, the only employee of Hunter Furniture Company, makes $30,000 per year and is paid once a month. For the month of July, his federal income taxes withheld are $180, state income taxes withheld are $37, social security is 6.2%, Medicare tax is 1.45%, State Unemployment Tax is 4%, and Federal Unemployment tax is .8%. What is the total amount of employer payroll taxes for the month of July for Hunter Furniture Company? (Assume all earnings are subject to employer payroll taxes.)

Withholding for federal income taxes places employees on a pay-as-you-go basis.

Salespeople who are paid a percentage of net sales are paid on

Salespeople who are paid a percentage of net sales are paid on the basis of ___________________.

An employee whose regular hourly rate is $20 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week. In the payroll register, the employer should record an overtime premium of

The net amount due employees for their wages is recorded as a debit to Salaries and Wages Payable.

To compute ____________________ pay, it is necessary to subtract the total of an employee's deductions from the employee's gross pay.

During the week ended April 26, 2013, Andy Tyler worked 40 hours. His regular hourly rate is $15. Assume that his earnings are subject to social security tax at a rate of 6.2 percent and Medicare tax at a rate of 1.45 percent. He also has deductions of $31 for federal income tax and $21 for health insurance. A) What is his gross pay for the week? B) What is the total of his deductions for the week? C) What is his net pay for the week?

Lisa Ramos has a regular hourly rate of $10.75. In a week when she worked 40 hours and had deductions of $55 for federal income tax, $26.75 for social security tax, and $6.25 for Medicare tax, her net pay was

The Payroll Tax Expense account is used to record which of the following taxes?

Salaried employees who hold supervisory or managerial positions generally are not subject to wage and hour laws.

The employer records the amount of federal income taxes withheld from employees in the Employee Income Tax ____________________ account.

The amount debited to Wages Expense when a payroll is recorded is the

An employee whose regular hourly rate is $9 and whose overtime rate is 1.5 times the regular rate worked 44 hours one week. The employee's gross pay was

One who is hired by an employer and who is under the control and direction of the employer is called a(n) ___________________.

The amount of employees' ____________________ pay is recorded in the Wages Expense account.

Employees submit Form W-4 to their employers to show the number of withholding allowances they claim for federal income tax withholding purposes.

Federal law requires that the employer withhold _________ from the employee's pay.

Which of the following statements is correct?

Sabrina Duncan had gross earnings for the pay period ending 10/15/13 of $5,785. Her total gross earnings as of 9/30/13 were $104,500. If Social Security taxes are 6.2% on a maximum earnings of $106,800 per year, Sabrina's Social Security withheld from her 10/15/13 paycheck would be: