Question : 71.Employers required to pay all of the following the wages : 1237450

 

 

71.Employers are required to pay all of the following on the wages paid to each employee except:   

A.Social security taxes.

 

B.Worker’s compensation insurance.

 

C.Medicare taxes.

 

D.Health insurance benefits.

 

 

 

 

72.The Social Security tax paid by an employer is:   

A.Greater than the amount paid by the employee.

 

B.Less than the amount paid by the employee.

 

C.Equal to the amount paid by the employee.

 

D.The employer does not pay Social Security tax, only the employee pays the tax.

 

 

 

 

73.Which of the following payroll costs are shared equally by the employer and the employee?   

A.State unemployment taxes.

 

B.Workers’ compensation.

 

C.Social security.

 

D.Federal unemployment taxes.

 

 

 

 

74.An employer’s total payroll-related costs always exceed the wages and salaries earned by employees by:   

A.Amounts withheld from employees’ pay.

 

B.Payroll taxes and mandated programs such as workers’ compensation insurance.

 

C.50%.

 

D.Employers’ payroll-related costs actually are less than the gross wages and salaries earned by employees, because of amounts withheld from employees’ checks.

 

 

 

 

75.The amounts that a business withholds as taxes from an employee’s earnings:   

A.Represent payroll taxes expense to the employer.

 

B.Are deposited in an interest-bearing account until the employee is terminated.

 

C.Represent miscellaneous revenue to the employer.

 

D.Represent current liabilities to the employer.

 

 

 

 

The average employee of Girard Corporation earns gross pay of $75,000 per year. The following table shows the relative size of various payroll amounts by expressing each as a percentage of total wages and salaries expense (gross pay):  In addition, Girard pays $425 per month per employee for group health insurance.

 

76.Refer to the information above. Which of the following is the largest payroll-related expense incurred by Girard?   

A.Group health insurance premiums.

 

B.Income taxes expense.

 

C.The employer’s share of social security taxes.

 

D.Wages and salaries expense.

 

 

 

 

77.Refer to the information above. Which of the following represents the second largest payroll related expense incurred by Girard?   

A.Group health insurance premiums.

 

B.Income taxes expense.

 

C.The employer’s share of social security taxes and Medicare taxes.

 

D.Wages and salaries expense.

 

 

 

 

78.Refer to the information above. Which of the following represents the largest amount withheld from employees’ paychecks?   

A.Workers’ compensation insurance.

 

B.Social Security and Medicare.

 

C.Personal income taxes.

 

D.Group health insurance.

 

 

 

 

79.Which of the following payroll taxes do not stop once an employee reaches a certain level of income:   

A.Medicare taxes.

 

B.Social security taxes.

 

C.Unemployment taxes.

 

D.Medicare, Social security, and unemployment taxes.

 

 

 

 

Stone Corporation has 25 employees and incurs total wages and salaries expense of $900,000 per year. The following table shows various payroll amounts as a percentage of this annual wage and salaries expense:  In addition, Stone provides group health insurance for its entire workforce. The cost of this insurance is $350 per month for each employee.

 

80.Refer to the information above. The company’s annual payroll-related expenses amount to approximately:   

A.$1,085,600.

 

B.$1,181,850.

 

C.$1,250,700.

 

D.$900,000.

$900,000 + (.05 × $900,000) + (.0765 × $900,000) + (.05 × $900,000) + (.02 × $900,000) + ($350 × 12 × 25) = $1,181,850

 

 

 

 

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