401(k) plans are usually subject to FICA taxes.
Multiple Choice
401(k) plans are usually subject to FICA taxes.
All 401(k) plans are cafeteria plans.
401(k) plans always reduce income tax liability.
401(k) plans are exempt from all payroll taxes.
Homework Answers
Correct option is Option first. i.e. 401(k) Plans are usually subject to FICA taxes. As per the rules of IRS, FICA will still be levied on the contribution amount made for 401(k) plans.
Cal Ruther, an employer, is subject to FICA taxes but exempt from FUTA and SUTA taxes. During the last quarter of the ye...
Cal Ruther, an employer, is subject to FICA taxes but exempt from FUTA and SUTA taxes. During the last quarter of the year, his employees earned monthly wages of $9,600, all of which is taxable. The amount of federal income taxes withheld each month is $1,250. Journalize the payment of wages, and record the payroll tax on November 29. If an amount box does not require an entry, leave it blank or enter "0". When required, round your answers to...
Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal State Factory $122,200 $122,200...
Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal State Factory $122,200 $122,200 $36,200 $36,200 Sales 33,500 33,500 3,900 3,900 Administrative 35,500 35,500 xxxx xxxx Total $191,200 $191,200 $40,100 $40,100 At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $118,500 and 1.45% in excess of $118,500. Of...
Officers' salaries Sales salaries Federal income taxes withheld FICA taxes withheld Health insurance premiums withheld Union...
Officers' salaries Sales salaries Federal income taxes withheld FICA taxes withheld Health insurance premiums withheld Union dues withheld Salaries (included above) subject to federal unemployment taxes Salaries (included above) subject to state unemployment taxes $36.000 70,000 22,000 10.500 1.900 1.500 58,000 63,000 Required Prepare journal entries on April 30 to record: a. Accrual of the monthly payroll. b. Payment of the net payroll. c. Accrual of employer's payroll taxes. (Assume that the FICA tax matches the amount withheld, the federal...
Officers' salaries $320,000 Sales salaries 670.000 Federal income taxes withheld 190.000 FICA taxes withheld 75,00...
Officers' salaries $320,000 Sales salaries 670.000 Federal income taxes withheld 190.000 FICA taxes withheld 75,000 Health insurance premiums withheld 16.000 Union dues withheld 12.000 Salaries included above) subject to federal unemployment taxes 550,000 Salaries included above) subject to state unemployment taxes 600,000 Required Prepare journal entries on April 30 to record: a. Accrual of the monthly payroll. b. Payment of the net payroll. c. Accrual of employer's payroll taxes. (Assume that the FICA tax matches the amount withheld, the federal...
All of the following statements regarding FICA taxes are true except: Multiple Choice Employers must pay...
All of the following statements regarding FICA taxes are true except: Multiple Choice Employers must pay withheld FICA taxes to the IRS. An employer must pay FICA taxes equal to the amount withheld from the employee. FICA taxes include Medicare taxes and state income taxes. FICA taxes are deducted from the employee. The amount of FICA deducted from the employee is credited to a liability account.
Accounting Question (Cafeteria Plans) True or False 1. A cafeteria plan can provide employees and partners...
Accounting Question (Cafeteria Plans) True or False 1. A cafeteria plan can provide employees and partners with a choice of participating in a Section 401(k), a health insurance arrangement or cash. 2. Former employees can participate in a cafeteria plan. 3. Sole proprietors can participate in a cafeteria plan. 4. A cafeteria plan provide employees with a choice of vacation pay or group term life insurance. 5. Salary reduction amounts that are exchanged for health benefits in a cafeteria plan...
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid...
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee. a. Gross Pay through August $ 5,200 18,900 112,900 Gross Pay for September $ 2,400 2,800 8,700 Compute BMX's amounts for each of these four taxes as applied to the employee's gross...
Tony's marginal income tax rate is 30% and he is subject to FICA taxes of 7.65%...
Tony's marginal income tax rate is 30% and he is subject to FICA taxes of 7.65% on all his wages. His employer offered him a choice between an additional 5000 of cash or non taxable fringe benefits that would cost tony 3000 to purchase directly. If he takes the cash and pays for the benefit himself, how much better off worse off is he? a- 500 better off b- 117 better off c- 500 worse off d- 117 worse off
Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $128,400 paid...
Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the company's FUTA taxes are 0.6% and SUTA taxes are 5.4%. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the company's four employees. Name Dali Trey Kiesha Chee Gross Pay through...
BMX Company has one employee. FICA Social Security taxes are6.2% of the first $128,400 paid...
BMX Company has one employee. FICA Social Security taxes are
6.2% of the first $128,400 paid to its employee, and FICA Medicare
taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and
SUTA taxes are 5.4% of the first $7,000 paid to its employee.Gross Pay throughAugust 31Gross Pay for Septembera.$5,200$2,400b.2,3502,450c.122,8008,700rev: 05_16_2019_QC_CS-168714Compute BMX’s amounts for each of these four taxes as applied to
the employee’s gross earnings for September under each of three
separate situations (a), (b),...
Officers' salaries Sales salaries Federal income taxes withheld FICA taxes withheld Health insurance premiums withheld Union dues withheld Salaries (included above) subject to federal unemployment taxes Salaries (included above) subject to state unemployment taxes $36.000 70,000 22,000 10.500 1.900 1.500 58,000 63,000 Required Prepare journal entries on April 30 to record: a. Accrual of the monthly payroll. b. Payment of the net payroll. c. Accrual of employer's payroll taxes. (Assume that the FICA tax matches the amount withheld, the federal...
Officers' salaries $320,000 Sales salaries 670.000 Federal income taxes withheld 190.000 FICA taxes withheld 75,000 Health insurance premiums withheld 16.000 Union dues withheld 12.000 Salaries included above) subject to federal unemployment taxes 550,000 Salaries included above) subject to state unemployment taxes 600,000 Required Prepare journal entries on April 30 to record: a. Accrual of the monthly payroll. b. Payment of the net payroll. c. Accrual of employer's payroll taxes. (Assume that the FICA tax matches the amount withheld, the federal...
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee. a. Gross Pay through August $ 5,200 18,900 112,900 Gross Pay for September $ 2,400 2,800 8,700 Compute BMX's amounts for each of these four taxes as applied to the employee's gross...
Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the company's FUTA taxes are 0.6% and SUTA taxes are 5.4%. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the company's four employees. Name Dali Trey Kiesha Chee Gross Pay through...
BMX Company has one employee. FICA Social Security taxes are
6.2% of the first $128,400 paid to its employee, and FICA Medicare
taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and
SUTA taxes are 5.4% of the first $7,000 paid to its employee.Gross Pay throughAugust 31Gross Pay for Septembera.$5,200$2,400b.2,3502,450c.122,8008,700rev: 05_16_2019_QC_CS-168714Compute BMX’s amounts for each of these four taxes as applied to
the employee’s gross earnings for September under each of three
separate situations (a), (b),...
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