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Exam 8: Paying, Recording, and Reporting Payroll and Payroll Taxes:

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Question 21

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The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2) Assume: FICA-OASDI is 6.2% based on a limit of $128,400. FICA-Medicare is 1.45%. FUTA is .8% based on a limit of $7,000. SUTA is 5.6% based on a limit of $7,000. State income tax is 2.8%. -Compute the total regular earnings.

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Question 22

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For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). -

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Question 23

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Which form is used to report FICA taxes for the employer and employee, and also federal income taxes for the employee?

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2) Assume: FICA-OASDI is 6.2% based on a limit of $128,400. FICA-Medicare is 1.45%. FUTA is .8% based on a limit of $7,000. SUTA is 5.6% based on a limit of $7,000. State income tax is 2.8%. -Compute the total deductions for the employees' paychecks.

What type of an account is Wages and Salaries Payable?

Wages and Salaries Expense is:

Payroll information for Kinzer's Interior Decorating for the first week in October is as follows: Taxable earnings subject to Federal and State Unemployment taxes: $5,000 Assume the following tax rates: Required: Prepare the employer's payroll tax entry for Kinzer for the first week of October.

Ben's Mentoring had the following information for the pay period ending September 30: Assume: FICA-OASDI applied to the first $128,400 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings. -Compute the total retirement.

The Wages and Salaries Expense account would be used to record:

Jefferson Tutoring had the following payroll information on February 28: Assume: FICA tax rates are: OASDI 6.2% on a limit of $128,400 and Medicare 1.45%. State Unemployment tax rate is 2% on the first $7,000. Federal Unemployment tax rate is 0.8% on the first $7,000. Using the information above, the journal entry to record the payroll tax expense for Jefferson Tutoring would include:

Both employer and employee contribute to FICA-OASDI and SUTA tax.

The form used for the annual federal unemployment taxes is Form 941.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). -

A monthly depositor:

The same deposit rules apply to employers based on the amount collected and owed by that employer for payroll taxes.

There is no limit on the amount of taxes paid for SUTA.

Ben's Mentoring had the following information for the pay period ending September 30: Assume: FICA-OASDI applied to the first $128,400 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings. -Compute the employees' FICA-OASDI.

Using the information below, determine the amount of the payroll tax expense for B. Hope Company's first payroll of the year. In your answer list the amounts for FICA (OASDI and Medicare), SUTA, and FUTA. Assume: FICA tax rates are: OASDI 6.2% on a limit of $128,400 and Medicare 1.45%. State Unemployment tax rate is 5.0% on the first $7,000. Federal Unemployment tax rate is 0.8% on the first $7,000.

Prepare a general journal payroll entry for Advanced Computer Programming using the following information: Assume the following: a) FICA: OASDI, 6.2% on a limit of $128,400; Medicare, 1.45%. b) Federal income tax is 15% of gross pay. c) Each employee pays $20 per week for medical insurance.

The W-3 is also known as the Transmittal of Wage and Tax Statements.