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Exam 9: Payroll Accounting: Employer Taxes and Reports

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Question 1

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Anthony Pescador owns Sundance Florist. He does his banking at United Credit Union (UCU) in Myrtle Beach, South Carolina. The amounts in his general ledger for payroll taxes and the employee's withholding of Social Security, Medicare, and federal income tax as of April 15 of the current year show the following: Social Security tax payable (employer and employee), $3,412; Medicare tax payable (employer and employee), $816; FUTA tax payable, $180; SUTA tax payable, $1,256; and Employee income tax payable, $9,828. Journalize the payment of the Form 941 deposit to UCU and the payment of the SUTA tax to the State of South Carolina as of April 15, 20--.

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Question 2

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Melissa Taylor has gross earnings of $425 and withholdings of $26.35 for Social Security tax, $6.16 for Medicare tax, and $35 for federal income tax. Her employer pays $26.35 for Social Security tax, $6.16 for Medicare tax, $3 for FUTA tax, and $9 for SUTA tax. The total cost of Melissa to her employer is

A) $32.51.
B) $425.00.
C) $469.51.
D) $437.00.

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

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Question 3

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Match the terms with the definitions. -Employer's Quarterly Federal Tax Return

Self-employment income is the gross income of a trade or business run by an individual.

Selected information from the payroll register of Barbara's Stables for the week ended September 28, 20--, is as follows: Social Security tax is 6.2% on the first $110,100 of earnings for each employee. Medicare tax is 1.45% of gross earnings, FUTA tax is 0.8%, and SUTA tax is 5.4% each on the first $7,000 of earnings. ​ Calculate the amount of taxable earnings for unemployment and Social Security taxes, and prepare the journal entry to record the employer's payroll taxes as of September 28, 20--.

The employer must pay the amount owed for Social Security and Medicare by the business to the IRS; however, the employees pay for Social Security and Medicare directly to the IRS.

From the following information from the payroll register of Veronica's Auto Supply Store, calculate the amount of taxable earnings for unemployment and FICA tax, and prepare the journal entry to record the employer's payroll taxes as of April 30, 20--. Social Security tax is 6.2% on the first $94,200 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.8%, and SUTA tax is 5.4% each on the first $7,000 of earnings.

FUTA taxes are deposited and an annual report of federal unemployment tax is filed using Form 8109.

The FUTA tax applies to all employee earnings throughout the year.

If an employer qualifies for a lower state unemployment tax rate, this lowers the credit allowed in computing the federal unemployment tax due.

Employees usually pay the entire cost of workers' compensation insurance.

To journalize the employer's payroll taxes, we need to credit all of the following accounts EXCEPT

Form 941 is a(n)

A self-employment tax is required of an individual who owns his or her own business and makes

The due date for payroll taxes is not the same date for all employers.

Match the terms with the definitions. -A contribution to the FICA program.

By January 31 each year, employers must furnish each employee with a Wage and Tax Statement.

The employer pays which of the following to the Internal Revenue Service?

Self-employment tax is double the Social Security and Medicare rates.

A key source of information for computing employer payroll taxes is the