Employee payroll withholding | Accounting homework help
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
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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
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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:
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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:
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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:
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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:
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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
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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
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