Question :
Multiple Choice Questions
31. Which of the following statements correct?
A. The accountant obtains : 1197559
Multiple Choice Questions
31. Which of the following statements is correct?
A. The accountant obtains information about wages subject to payroll taxes from the payroll register.
B. Most commercial banks are authorized to accept the employee’s tax deposits for federal income taxes withheld and the employer’s and employees’ shares of social security taxes.
C. Payroll tax deposits can be made electronically or using a Federal Tax Deposit Coupon, Form 8109.
D. All of the above statements are correct.
32. Employees’ payments for federal income taxes withheld and social security and Medicare taxes are periodically
A. sent directly to the Internal Revenue Service.
B. deposited in a special-purpose bank account, controlled by the company, until year-end when the funds are sent to the U.S. Treasury Department.
C. sent to the local office of the Internal Revenue Service.
D. deposited in a government-authorized financial institution.
33. The frequency of deposits of federal income taxes withheld and social security and Medicare taxes is most dependent on
A. the amount owed.
B. the number of payroll periods a firm has.
C. the profit reported by the firm.
D. the number of employees on the payroll.
34. Both the employer and the employee are responsible for paying
A. social security and Medicare taxes.
B. FUTA taxes.
C. social security, Medicare, and FUTA taxes.
D. SUTA taxes.
35. Only the employer is responsible for paying
A. social security and Medicare taxes.
B. FUTA taxes.
C. social security, Medicare, and FUTA taxes.
D. federal income taxes.
36. Mr. Zee worked 48 hours during the week ended January 18, 2013. He is paid $10 per hour, and is paid time and a half for all hours over 40 in a week. He had $100 withheld from his pay for federal income taxes, and $20 withheld for health insurance. The combined social security and Medicare tax rate is 7.65%, and the federal and state unemployment tax rates are .8% and 3.8%, respectively. All earnings are taxable. What is the total employer payroll tax expense for Mr. Zee’s current paycheck?
A. $63.70
B. $39.78
C. $23.92
D. $0
37. Alfred Spindle earned gross wages of $1,620 for the week ended June 21, 2013. His gross wages year to date, prior to his June 21 paycheck, are $38,556. He had $88 withheld from his pay for federal income taxes, and $16 for health insurance. Social Security and is 6.2% and Medicare tax is 1.45%; the federal unemployment tax rate is .8% and the state unemployment tax rate is 4.2%, both on a maximum of $7,000 per each employee’s annual earnings. What is the total employer payroll tax expense from Alfred’s June 21, 2013, paycheck?
A. $204.93
B. $123.93
C. $81.00
D. $0
38. Rick O’Shea, the only employee of Hunter Furniture Company, makes $30,000 per year and is paid once a month. For the month of January, his federal income taxes withheld are $180, state income taxes withheld are $37, social security is 6.2% on a maximum wages of $106,800, Medicare tax is 1.45%, State Unemployment Tax is 4.2%, and Federal Unemployment tax is .8%, both on a maximum wages of $7,000 per employee. What is the employer’s payroll tax expense from Rick’s paycheck?
A. $125.00
B. $191.25
C. $316.25
D. $155.00
39. Samantha Rodriguez had gross earnings for the pay period ending 10/15/13 of $4,785. Her total gross earnings as of 9/30/13 were $104,500. Social Security taxes are 6.2% on a maximum earnings of $106,800 per year. The Social Security tax due by her employer from her 10/15/13 paychecks is:
A. $297.67
B. $142.60
C. $154.07
D. $192.75
40. Which of the following is not an employer payroll tax?
A. federal unemployment tax
B. federal income tax
C. state unemployment tax
D. FICA (Social Security and Medicare)
