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Employee Payroll Withholding

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;;1. Which of the following would not typically be an employee payroll withholding?;A. Unemployment taxes;B. Medical insurance;C. State income tax;D. Social Security;2. Grammy?s Bakery had the following information for the pay period ending June 30;Employee Name;Pay;Rate;Hours Worked;Cumulative Earnings;Department;Federal Income Tax Withheld;P. Ganster;$2,000;Salaried;$12,000;Kitchen;$86.00;T. Baker;10.00/hr;50;$6,500;Office;$22.00;Assume;FICA-OASDI is applied to the first $106,800 at a rate of 6.2%.;FICA-Medicare is applied at a rate of 1.45%.;FUTA is applied to the first $7,000 at a rate of 0.8%.;SUTA is applied to the first $7,000 at a rate of 5.6%.;State income tax is 3.8%.;Given the above information, what would be the amount applied to Office Salaries Expense?;A. Debit of $550;B. Credit of $550;C. Debit of $500;D. Credit of $500;Calculation = xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx;3. The amount of federal income tax withheld from an employee during the year is determined by the employee?s;A. W-4 form.;B. W-2 form.;C. 1040 form.;D. None of the above;4. To compute federal income tax to be withheld;A. use the net earnings and number of allowances.;B. use gross earnings, number of allowances, and marital status.;C. use net earnings and Form W-4.;D. None of the above;5. The information needed to make the journal entries to record the wages and salaries expense comes from;A. Form W-2.;B. the look-back period.;C. the payroll register.;D. Form 941.;6. When calculating the employee?s payroll, the clerk forgot about the wage base limits. What impact could this error have on the employee?s check?;A. FICA-OASDI could be overstated.;B. FUTA could be overstated.;C. SUTA could be overstated.;D. All of the above;7. A summary record of each person?s earnings, deductions, and net pay is called a/an;A. payroll register.;B. W-4.;C. employee individual earnings record.;D. general journal.;8. Brian Temple?s cumulative earnings are $73,000, 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?;A. $0, $76.85;B. $328.60, $0;C. $328.60, $76.85;D. $3,286, $768.50;Calculation= xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx;9. Gross earnings are the same as;A. regular earnings.;B. regular earnings plus overtime earnings.;C. net earnings.;D. net earnings plus overtime earnings.;10. Compute net earnings on March 3, when gross (taxable) pay equals $750. FICA-OASDI tax rates are 6.2%, FICA-Medicare rate is 1.45%, federal income tax is $71.00, and state income tax is $5.00.;A. $615.00;B. $610.00;C. $616.62;D. $672.12;Calculation;xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx;11. 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?;A. $800;B. $720;C. $780;D. $690;Calculation;xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx;12. Which type of account is Wages and Salaries Payable?;A. Asset;B. Liability;C. Revenue;D. Expense;13. On January 15, Robert Love earned $4,000 and has the following deductions: FICA-OASDI 6.2%, FICA-Medicare 1.45%, federal income tax of $200, and state income tax of $40. What is his net pay?;A. $3,400;B. $3,454;C. $4,454;D. $4,000;Calculation;xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx;14. Todd earns an hourly rate of $20 and had taxes withheld totaling $200. What would his net earnings be if he worked 44 hours (assuming double time over 40 hours)?;A. $760;B. $780;C. $720;D. $860;Calculation;xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx;15. If Sheila worked 38 hours, how many hours of overtime did she earn?;A. Zero;B. One;C. Five;D. Nine;16. The debit amount to Payroll Tax Expense represents;A. the employer?s portion of the payroll taxes.;B. the employees? portion of the payroll taxes.;C. the employer?s and employees? portion of the payroll taxes.;D. None of the above;17. Great Lakes Tutoring had the following payroll information on February 28;Employee;Gross Pay;Cumulative Earnings Prior to This Payroll;R. Hill;$4,000;$4,000;Assume;FICA tax rates are OASDI 6.2% on a limit of $106,800, and Medicare is 1.45%.;The state unemployment tax rate is 2% on the first $7,000.;The federal unemployment tax rate is 0.8% on the first $7,000.;Using the information above, the journal entry to record the payroll tax expense for Great Lakes Tutoring would include;A. a debit to Payroll Tax Expense in the amount of $390.;B. a credit to FUTA Payable for $24.;C. a credit to SUTA Payable for $60.;D. All of the above;Calculation: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx;18. Wages and Salaries Expense is;A. equal to net pay.;B. equal to gross pay.;C. equal to the employer?s taxes.;D. None of the above;19. The entry to record the payroll tax expense would include a;A. credit to Federal Income Taxes Payable.;B. credit to Cash.;C. credit to FICA (OASDI and Medicare) Taxes Payable.;D. credit to Wages Payable.;20. The law that governs overtime earnings is called the;A. Federal Insurance Contribution Act.;B. Federal Wage and Hour Law.;C. Fair Labor Standards Act.;D. Both b and c

 

Paper#79819 | Written in 18-Jul-2015

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