Question :
21. Large, highly-rated firms sometimes sell commercial paper A. To borrow funds at : 1236237
21. Large, highly-rated firms sometimes sell commercial paper
A. To borrow funds at a lower rate than through a bank.
B. To borrow funds when they cannot obtain a loan from a bank.
C. Because they can’t borrow anywhere else.
D. To improve their credit rating.
22. Which of the following is not an employer payroll cost?
A. FICA taxes.
B. Federal and state unemployment taxes.
C. Federal and state income taxes.
D. Employer contributions to a retirement plan.
23. Which of the following is not withheld from an employee’s salary?
A. FICA taxes.
B. Federal and state unemployment taxes.
C. Federal and state income taxes.
D. Employee portion of health insurance.
24. Which of the following is true regarding FICA taxes?
A. FICA taxes are paid only by the employee.
B. FICA taxes are paid only by the employer.
C. FICA taxes are paid in equal amounts by the employee and the employer.
D. FICA taxes are paid in different amounts by the employee and the employer.
25. Which of the following are not included in an employer’s payroll tax expense?
A. Employer portion of FICA taxes.
B. Federal unemployment taxes.
C. State unemployment taxes.
D. State income taxes.
26. Which of the following are included in an employer’s payroll tax expense?
A. Employer portion of FICA taxes.
B. Federal unemployment taxes.
C. State unemployment taxes.
D. All of the other answers are correct
27. Mike Gundy is a college football coach making a salary of $2,400,000 a year ($200,000 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the FICA maximum base amount is $106,800, how much will be withheld during the year for the coach’s Social Security and Medicare.
A. $34,800.
B. $41,422.
C. $183,600.
D. None of these amounts is correct
28. Mike Gundy is a college football coach making a salary of $2,400,000 a year ($200,000 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the FICA maximum base amount is $106,800, through what month will Social Security be withheld?
A. Social Security will be withheld only in January.
B. Social Security will be withheld through the entire year.
C. Social Security will be withheld through the month of March.
D. Social Security will be withheld through the month of June.
29. Action Travel has 10 employees each working 40 hours per week and earning $20 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the actual direct deposit of payroll for the first week of January?
A. $5,404.
B. $5,708.
C. $4,792.
D. $8,000.
30. Action Travel has 10 employees each working 40 hours per week and earning $20 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the total payroll tax expense for the first week of January?
A. $612.
B. $1,224.
C. $916.
D. $304.
