5. The federal unemployment tax is levied on a. employees and employers. b. employers and is...
5. The federal unemployment tax is levied on
a. employees and employers.
b. employers and is deducted from employees' earnings.
c. employees and is deducted from customer payments.
d. employers and is not deducted from employees' earnings.
6. A self-employment tax is required of an individual who owns his or her own business and makes
a. $400 or more.
b. $1 or more.
c. $1,000 or more.
d. $200 or more.
7. Which of the following tax programs often has a merit-rating system to encourage employers to provide regular employment for workers?
a. FUTA
b. SUTA
c. workers' compensation insurance
d. FICA
8. A self-employment tax is a contribution to the
a. Social Security and Medicare programs.
b. FUTA programs.
c. charities of the individual owner's choice.
d. SUTA programs.
9. To journalize the employer's payroll taxes, we need to credit all of the following accounts EXCEPT
a. Social Security Tax Payable.
b. Medicare Tax Payable.
c. Payroll Taxes Expense.
d. FUTA Tax Payable.
10. Melissa Taylor has gross earnings of $425 and withholdings of $26.35 for Social Security tax, $6.16 for Medicare tax, and $35 for federal income tax. Her employer pays $26.35 for Social Security tax, $6.16 for Medicare tax, $3 for FUTA tax, and $9 for SUTA tax. The total cost of Melissa to her employer is
a. $469.51.
b. $32.51.
c. $425.00.
d. $437.00.
11. When all taxes have been paid, the Social Security Tax Payable account will have
a. a zero balance.
b. equal debit and credit balances.
c. a debit balance.
d. a credit balance.
12. Employers who have $100,000 or more due in federal income tax withholding and Social Security and Medicare taxes on any day during the current quarter should journalize the debt and pay at the end of the
a. next banking day.
b. month following the end of the quarter.
c. year.
d. quarter.
Homework Answers
5. b. employers and is deducted from employee's earnings.
6. a. $400 or more.
7. b. SUTA.
8. a. Social Security and Medicare programs.
9. c. Payroll Tax Expense
10. a. $469.51 (Calculation: Gross Earnings + other payments done by employer on behalf of employee = 425 + 26.35 + 6.16 + 3 + 9 = $469.51).
11. a. a zero balance
12. a. next banking day.
Add Answer to:
5. The federal unemployment tax is levied on
a. employees and employers.
b. employers and is...
Which of the following taxes are employers required to withhold from employees? FICA tax Federal unemployment...
Which of the following taxes are employers required to withhold from employees? FICA tax Federal unemployment tax FICA tax and SUTA and FUTA State unemployment tax
The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23) is a United States federal law that imp...
The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23) is a
United States federal law that imposes a federal employer tax used
to help fund state workforce agencies. Employers report this tax by
filing an annual Form 940 with the Internal Revenue Service.
Complete the following steps:
Net FUTA tax: Since this is the first pay period of the year,
none of the employees are near the $7,000 ceiling; therefore, each
employee’s gross earnings is subject to the FUTA...
The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23) is a United States federal law...
The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23) is a
United States federal law that imposes a federal employer tax used
to help fund state workforce agencies. Employers report this tax by
filing an annual Form 940 with the Internal Revenue Service.
Complete the following steps:
Net FUTA tax: Since this is the first pay period of the year,
none of the employees are near the $7,000 ceiling; therefore, each
employee’s gross earnings is subject to the FUTA...
To compute the Federal Unemployment Tax, the credit against the tax, and any credit reductions that...
To compute the Federal Unemployment Tax, the credit against the tax, and any credit reductions that might apply, employers are required to use a floating scale. This scale for SUTA is 6.0% of the first $7,000 of earnings, 5.4% credit (for SUTA taxes paid) = 0.6 percent of net FUTA rate. The experience ratings set in SUTA rate for each employer based on the past employment record. Suppose this process could be erased and a new one could be created....
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A,B
and C only
I dyTUI need A. wing is a tax borne by the employer but not the employee? Which of the following is a tax bor a. State income tax b. FUTA tax c. Medicare tax Social security tax d. nas gross earnings of $600 and withholdings of $45.90 for social security and Media for income taxes. The employer pays $45.90 for social security and Medicare An employee has gross earnings o care taxes and $60 for income...
5 - Record the following in the general journal: Your Co's employees earned $21000 for work...
5 - Record the following in the general journal: Your Co's employees earned $21000 for work performed 3/16 to 3/31, and they'll be paid on 4/5. The following amounts will be withheld: $4200 federal income tax, $2100 state income tax, $1302 social security, $304.5 medicare, and $630 medical insurance. FUTA tax is $168 and SUTA tax $420. Record employees earnings and employer payroll taxes. General Journal Date Account/Explanation Debit Credit 3/31/20X1 PR (accrue employee earnings) 3/31/20X1 (accrue employer taxes) 4/5/20X1...
During the week ended June 15, Wiley Automotive's employees earned $2,000 of gross wages and had...
During the week ended June 15, Wiley Automotive's employees earned $2,000 of gross wages and had $300 of federal income tax withheld. All of their employees had already earned over $7,000 of gross wages for the year so none of their wages were subject to FUTA or SUTA tax. However, all of their wages were still subject to Social Security tax of 6.2% and Medicare tax of 1.45%. The journal entry to record Payroll Tax Expense for the pay period...
PAYROLL REGISTER AND JOURNAL ENTRIES WOR JOURNAL ENTRIES WORKSHEET Requirement a): Complete the payroll register (20...
PAYROLL REGISTER AND JOURNAL ENTRIES WOR JOURNAL ENTRIES WORKSHEET Requirement a): Complete the payroll register (20 points) DEDUCTIONS State Net Pay EARNINGS Federal Income Income Total Deductions Tax Social Security Medicare Tax Tax Wage Rate Regular Wages Total Wages Overtime Wages Total Hours Worked 40 44 42 Accum Wages 99,500 78,500 6,700 Name D. Rump N. Pelowski D. Knatts Totals: 312.45 225.951 279.45 $42 $29 $36 Requirement b): Complete the employee and employer payroll journal entries (10 points) Dr Cr...
a) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA—Social Security $1,400.00 6.20% $86.80...
a)
Tax
September Earnings Subject to Tax
Tax Rate
Tax Amount
FICA—Social Security
$1,400.00
6.20%
$86.80
FICA—Medicare
1,400.00
1.45%
20.30
FUTA
900.00
3.10%
27.90
SUTA
900.00
2.90%
26.10
b)
Tax
September Earnings Subject to Tax
Tax Rate
Tax Amount
FICA—Social Security
$3,700.00
6.20%
$229.40
FICA—Medicare
3,700.00
1.45%
53.65
FUTA
3.10%
SUTA
2.90%
c)
Tax
September Earnings Subject to Tax
Tax Rate
Tax Amount
FICA—Social Security
6.20%
FICA—Medicare
9,600
1.45%
139.20
FUTA
3.10%
SUTA
2.90%
CH Required information The following information...
1) Howard company paid salaries of $116,000. All of it was taxable for social security, federal...
1) Howard company paid salaries of $116,000. All of it was taxable for social security, federal unemployment, state unemployment (3.25%). Income taxes withheld were $45,000. A) Write the payroll journal entry. Hint: This entry will include income tax payable, social security tax payable Medicare tax payable and salaries payable B) Write the payroll tax journal entry. Hint: This entry will incl social security tax payable, Medicare tax payable and salaries payable 2) Howard company paid salaries of $60,000. All of...
Which of the following taxes are employers required to withhold from employees? FICA tax Federal unemployment tax FICA tax and SUTA and FUTA State unemployment tax
The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23) is a
United States federal law that imposes a federal employer tax used
to help fund state workforce agencies. Employers report this tax by
filing an annual Form 940 with the Internal Revenue Service.
Complete the following steps:
Net FUTA tax: Since this is the first pay period of the year,
none of the employees are near the $7,000 ceiling; therefore, each
employee’s gross earnings is subject to the FUTA...
The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23) is a
United States federal law that imposes a federal employer tax used
to help fund state workforce agencies. Employers report this tax by
filing an annual Form 940 with the Internal Revenue Service.
Complete the following steps:
Net FUTA tax: Since this is the first pay period of the year,
none of the employees are near the $7,000 ceiling; therefore, each
employee’s gross earnings is subject to the FUTA...
A,B
and C only
I dyTUI need A. wing is a tax borne by the employer but not the employee? Which of the following is a tax bor a. State income tax b. FUTA tax c. Medicare tax Social security tax d. nas gross earnings of $600 and withholdings of $45.90 for social security and Media for income taxes. The employer pays $45.90 for social security and Medicare An employee has gross earnings o care taxes and $60 for income...
5 - Record the following in the general journal: Your Co's employees earned $21000 for work performed 3/16 to 3/31, and they'll be paid on 4/5. The following amounts will be withheld: $4200 federal income tax, $2100 state income tax, $1302 social security, $304.5 medicare, and $630 medical insurance. FUTA tax is $168 and SUTA tax $420. Record employees earnings and employer payroll taxes. General Journal Date Account/Explanation Debit Credit 3/31/20X1 PR (accrue employee earnings) 3/31/20X1 (accrue employer taxes) 4/5/20X1...
During the week ended June 15, Wiley Automotive's employees earned $2,000 of gross wages and had $300 of federal income tax withheld. All of their employees had already earned over $7,000 of gross wages for the year so none of their wages were subject to FUTA or SUTA tax. However, all of their wages were still subject to Social Security tax of 6.2% and Medicare tax of 1.45%. The journal entry to record Payroll Tax Expense for the pay period...
PAYROLL REGISTER AND JOURNAL ENTRIES WOR JOURNAL ENTRIES WORKSHEET Requirement a): Complete the payroll register (20 points) DEDUCTIONS State Net Pay EARNINGS Federal Income Income Total Deductions Tax Social Security Medicare Tax Tax Wage Rate Regular Wages Total Wages Overtime Wages Total Hours Worked 40 44 42 Accum Wages 99,500 78,500 6,700 Name D. Rump N. Pelowski D. Knatts Totals: 312.45 225.951 279.45 $42 $29 $36 Requirement b): Complete the employee and employer payroll journal entries (10 points) Dr Cr...
a)
Tax
September Earnings Subject to Tax
Tax Rate
Tax Amount
FICA—Social Security
$1,400.00
6.20%
$86.80
FICA—Medicare
1,400.00
1.45%
20.30
FUTA
900.00
3.10%
27.90
SUTA
900.00
2.90%
26.10
b)
Tax
September Earnings Subject to Tax
Tax Rate
Tax Amount
FICA—Social Security
$3,700.00
6.20%
$229.40
FICA—Medicare
3,700.00
1.45%
53.65
FUTA
3.10%
SUTA
2.90%
c)
Tax
September Earnings Subject to Tax
Tax Rate
Tax Amount
FICA—Social Security
6.20%
FICA—Medicare
9,600
1.45%
139.20
FUTA
3.10%
SUTA
2.90%
CH Required information The following information...
1) Howard company paid salaries of $116,000. All of it was taxable for social security, federal unemployment, state unemployment (3.25%). Income taxes withheld were $45,000. A) Write the payroll journal entry. Hint: This entry will include income tax payable, social security tax payable Medicare tax payable and salaries payable B) Write the payroll tax journal entry. Hint: This entry will incl social security tax payable, Medicare tax payable and salaries payable 2) Howard company paid salaries of $60,000. All of...
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