c-accounting-21e-chp-9

The journal entry to record the employer's payroll taxes includes: a. a credit to Cash. b. a credit to Social Security Tax Payable. c. both \"a debit to Payroll Tax Expense\" and \"a credit to Social Security Tax Payable\". d. a debit to Payroll Tax Expense. e. a credit to Employee Income Tax payable.

Which of the following is not true about Workers' Compensation insurance? a. The insurance premium for workers in a manufacturing plant could be higher than for office workers. b. The cost of the insurance depends on the number of employees, riskiness of the job, and the company 's accident history. c. The employee usually pays the entire cost of workers ' compensation insurance. d. Employers generally obtain the insurance either from the state in which they operate or from a private insurance company.

All of the following are not true about FICA taxes except: a. employees and employers pay the same amount of FICA taxes on the same earnings in the same pay period. b. only employees pay FICA taxes. c. only employers pay FICA taxes. d. employer FICA taxes are levied on employers at 50% of the amount withheld from employees.

What is an employer's responsibility regarding FUTA taxes? a. FUTA taxes are deposited using electronic funds transfer. b. FUTA taxes must be calculated on a quarterly basis. c. FUTA taxes must be remitted by the employer on a monthly basis. d. Both \"FUTA taxes must be calculated on a quarterly basis\" and \"FUTA taxes are deposited using electronic funds transfer\".

A form that shows the total amount of wages paid to the employee and the amounts of taxes withheld during the preceding taxable year a. must be provided by an employer to each employee by January 31 of each year. b. is not required unless an employee has earned more than $400. c. both \"is a Wage and Tax Statement\" and \"must be provided by an employer to each employee by January 31 of each year\" are true. d. is a Payroll Withholding Statement. e. is a Wage and Tax Statement.

Self-employment tax: a. rates are double the Social Security and Medicare rates. b. is a contribution to the Social Security and Medicare programs. c. applies to persons earning a net self-employment income of less than $400. d. both \"is a contribution to the Social Security and Medicare programs\" and \"rates are double the Social Security and Medicare rates\".

The employer payroll tax entry includes: a. a credit for the total of FUTA and SUTA taxes as \"FUTA and SUTA Tax payable.\" b. a credit to FUTA Tax payable. c. a credit to SUTA Tax payable. d. both \"a credit to FUTA Tax payable\" and \"a credit to SUTA Tax payable\".

Workers' compensation insurance provides insurance for employees who a. are injured on the job. b. lose their jobs. c. cannot pay their debts. d. need to go back to school for more training.

For the pay period ended October 20, $1,500 of employee earnings were subject to the FUTA tax. What is the amount of FUTA tax the employer would have to pay this pay period? a. $93 b. $9 c. $90 d. $81

Deposits for SUTA taxes are a. usually required on an annual basis. b. recorded with a debit to SUTA Tax Payable and a credit to Cash. c. both \"usually required on a quarterly basis\" and \"recorded with a debit to SUTA Tax Payable and a credit to Cash\". d. usually required on a monthly basis. e. usually required on a quarterly basis.

The following information is obtained from Hardware Company's payroll register for the pay period ended January 15: The Taxable Earnings Social Security column shows that $4,015 of employee earnings were subject to Social Security tax for the pay period. The employer's Social Security tax on these earnings is: a. $2,489.30 b. $248.75 c. $58.22 d. $248.93

The estimated workers' compensation premium calculated by Drilling Space Co. to pay at the beginning of the year, January 3, was $345.00. At December 31, Drilling calculated that based on its actual annual payroll, it would owe an additional $30.00 for the premium. The journal entry to record the payment of the workers' compensation premium on January 2 would include: a. credit Workers' Compensation Insurance Payable for $375.00. b. credit Cash for $345.00. c. both \"debit Workers' Compensation Insurance Expense for $345.00\" and \"credit Cash for $345.00\". d. debit Workers' Compensation Insurance Expense for $375.00. e. debit Workers' Compensation Insurance Expense for $345.00.

When recording the employer payroll taxes, a. wages and Salaries Expense is debited and Cash is credited. b. the Payroll Tax Expense is debited and Payroll Tax Payable is credited. c. the Payroll Taxes Expense is debited for the total of Social Security tax, the Medicare tax, the FUTA tax, and the SUTA tax. d. None of these choices are correct.

Sheri West has gross earnings of $875.00 and with holdings of $54.25 for Social Security tax, $12.68 for Medicare tax, and $57.00 for federal income tax. Her employer pays $54.25 for Social Security tax, $12.68 for Medicare tax, $5.25 for FUTA tax, and $47.25 for SUTA tax. The total cost of West to her employer is: a. $875.00 b. $994.43 c. $1,051.43 d. $927.50

Sheffield Co. expects its payroll for the year to be $250,000. If Sheffield's insurance premium rate is 0.2%, its payment for workers' compensation insurance at the beginning of the year would be: a. $420 b. $5.000 c. $50,000 d. $500

The rules by which employers must deposit Social Security and Medicare taxes can be found in a. In the Federal Tax Payment System. b. Circular E - Employer's Tax Guide. c. IRS form 941. d. IRS form 940.