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Exam 11: Payroll Taxes, Deposits, and Reports

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Question 1

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All of the following are internal control procedures that are recommended to protect payroll operations except

A) assign new employees to work in payroll operations.
B) keep payroll records in locked files.
C) make voluntary deductions from employee earnings based only on a signed authorization from the employee.
D) retain all Forms W-4.

E) A) and C)
F) None of the above

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Question 2

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Form 940,which is used to report the employer's federal unemployment tax,must be filed quarterly.

A) True
B) False

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Question 3

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A business pays ____________________ and Medicare taxes at the same rate and on the same taxable wages as its employees.

Beachside Manufacturing estimates that its office employees will earn $54,000 next year and its factory employees will earn $280,000.The firm pays the following rates for workers' compensation insurance: $0.40 per $100 of wages for the office employees and $4.10 per $100 of wages for the factory employees.Compute the estimated premiums for the office and factory employees.

After the JPR Corporation paid its employees on May 15,2016,and recorded the corporation's share of payroll taxes for the payroll paid that date,the firm's general ledger showed a balance of $1,730 in the Social Security Tax Payable account,a balance of $356 in the Medicare Tax Payable account,and a balance of $1,972 in the Employee Income Tax Payable account.On May 16,2016,the business issued a check to deposit the taxes owed in the local bank.Record this transaction on page 7 of a general journal.

On Form 941,the Employer's Quarterly Federal Tax Return,a firm calculates its liability for the quarter for

After the ABC Corporation paid its employees on June 15,2016,and recorded the corporation's share of payroll taxes for the payroll paid that date,the firm's general ledger showed a balance of $1,620 in the Social Security Tax Payable account,a balance of $401 in the Medicare Tax Payable account,and a balance of $1,851 in the Employee Income Tax Payable account.On June 16,2016,the business issued a check to deposit the taxes owed in the local bank.Record this transaction on page 15 of a general journal.

During the week ended June 15,Wiley Automotive's employees earned $2,000 of gross wages and had $300 of federal income tax withheld.All of their employees had already earned over $7,000 of gross wages for the year so none of their wages were subject to FUTA or SUTA tax.However,all of their wages were still subject to Social Security tax of 6.2% and Medicare tax of 1.45%.The journal entry to record Payroll Tax Expense for the pay period would be:

The entry to record the Social security and Medicare taxes levied on a business includes a debit to Payroll Taxes Expense.

Wharfside Manufacturing estimates that its office employees will earn $50,000 next year and its factory employees will earn $260,000.The firm pays the following rates for workers' compensation insurance: $0.37 per $100 of wages for the office employees and $4.00 per $100 of wages for the factory employees.Compute the estimated premiums for the office and factory employees.

Kristy Casey earns $39,000 per year and is paid once a month.For January,she had $188 withheld from her pay for federal income taxes,and $52 withheld for health insurance.Social Security and is 6.2% and Medicare tax is 1.45%;the federal unemployment tax rate is .6% and state unemployment tax rates is 4.2%.What is the total employer payroll tax expense for Kristy's January paycheck?

The payroll register of Rapid Repairs showed total employee earnings of $1,870 for the week ended April 5,2016.Compute the employer's payroll taxes for the period.The tax rates are: Social security tax,6.2 percent;Medicare tax,1.45 percent;FUTA tax,0.6 percent;SUTA tax,2.2 percent.All earnings are taxable.Record the employer's payroll taxes for the period on page 4 of a general journal.

Form 940 is used to report ____________________ taxes.

A firm must issue a Form ____________________ to each employee by January 31 of the year following the year during which the wages were earned.

To record the deposit of FUTA tax,the accountant would

The premium rate on workers' compensation insurance is determined by the ____________________ involved in the work performed.

Most states require that the employer file the state return for unemployment taxes

The payroll register of Vtech Enterprises showed total employee earnings of $2,100 for the week ended August 2,2016.Compute the employer's payroll taxes for the period.The tax rates are: Social security tax,6.2 percent;Medicare tax,1.45 percent;FUTA tax,0.6 percent;SUTA tax,2.2 percent.All earnings are taxable.Record the employer's payroll taxes for the period on page 4 of a general journal.

The payroll register of Burdick Travel Agency showed total employee earnings of $1,450 for the week ended June 7,2016.Compute the employer's payroll taxes for the period.The tax rates are: Social security tax,6.2 percent;Medicare tax,1.45 percent;FUTA tax,0.6 percent;SUTA tax,2.2 percent.All earnings are taxable.Record the employer's payroll taxes for the period on page 4 of a general journal.

Which of the following payroll taxes is not paid by the employee?