Question : 55.Each type of deduction made from the employees’ earnings recorded : 1220453

55.Each type of deduction made from the employees’ earnings is recorded in a separate  

A.asset account.

B.expense account.

C.liability account.

D.revenue account.

56.It is best not to pay wages and salaries by  

A.cash.

B.a check from the regular cash account.

C.the direct-deposit method.

D.a check from the payroll cash account.

57.All details related to an employee’s earnings, deductions, and net pay throughout the year would be found in  

A.the payroll register.

B.the individual earnings record.

C.the general journal.

D.the Wages Expense account in the general ledger.

58.Sabrina Duncan had gross earnings for the pay period ending 10/15/16 of $5,785. Her total gross earnings as of 9/30/16 were $111,400. If Social Security taxes are 6.2% on a maximum earnings of $113,700 per year, Sabrina’s Social Security withheld from her 10/15/16 paycheck would be:  

A.$358.67

B.$142.60

C.$216.07

D.$198.88

$113,700 – $111,400 = $2,300 * .062 = $142.60

59.Abe Carter had gross earnings of $6,000 for the pay period ending 11/30. His total gross earnings as of 11/15 were $112,000. If Social Security taxes are 6.2% on a maximum earnings of $113,700 per year and Medicare tax is 1.45% on all earnings, the journal entry to record his earnings for the period ending 11/30 would include:  

A.a credit to Salaries Expense for $6,000

B.a credit to Medicare Tax Payable for $870.00

C.a credit to Social Security Tax Payable for $87.00

D.a credit to Medicare Tax Payable for $87.00

$6,000 * .0145 = $87

60.For which of the following taxes is there no limit on the amount of annual earnings subject to the tax?  

A.Federal unemployment tax

B.Social Security tax

C.Federal income tax

D.State unemployment tax

61.Jill Monroe earns $25 per hour. She worked 48 hours this pay period and receives time-and-a-half for any hours worked over 40 hours per week. Jill’s gross earnings are:  

A.$1,200

B.$1,300

C.$1,100

D.$1,920

$25 * 40 hours = $1,000$25 * 1.5 = $37.50 * 8 = $300 + $1,000 = $1,300

62.Which of the following is NOT typically an employee payroll withholding?  

A.federal income taxes

B.state unemployment taxes

C.union dues

D.medical insurance

63.The employer records the amount of federal income tax withheld as:  

A.an asset.

B.a payroll tax expense.

C.a liability.

D.an expense.

64.Social Security taxes are paid by:  

A.employees only.

B.the employer and federal government.

C.both the employee and employer.

D.solely by the employer.

65.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 July, his federal income taxes withheld are $180, state income taxes withheld are $37, social security is 6.2%, Medicare tax is 1.45%, State Unemployment Tax is 4%, and Federal Unemployment tax is .8%. What is Rick’s net pay for July?  

A.$2,500.00

B.$2,283.00

C.$2,308.75

D.$2,091.75

$30,000/12 = $2,500 – $180 – $37 – $191.25 ($2,500 * .0765) = $2,091.75

66.The total amount earned by the employee is called the  

A.gross pay.

B.take home pay.

C.net pay.

D.payroll.