Question 1

Lacy Crawford has a regular hourly rate of $21.50. In a week when she worked 40 hours and had deductions of $110 for federal income tax, $53.50 for social security tax, and $12.50 for Medicare tax, her net pay was

Accepted Answer

The answer of Lacy Crawford has a regular hourly rate...

Question 2

Assuming a Medicare tax rate of 1.45% and monthly gross wages of $5,000, the amount recorded in Medicare Tax Payable for one quarter for the employee's payroll deduction is

Accepted Answer

The answer of Assuming a Medicare tax rate of 1.45%...

Question 3

Which of the following is a factor in the determination of the amount of social security tax to withhold from an employee's pay?

Accepted Answer

The amount of social security tax to withhold from an employee's pay is based on their gross wages.

Question 4

Lisa Ramos has a regular hourly rate of $10.75. In a week when she worked 40 hours and had deductions of $55 for federal income tax, $26.75 for social security tax, and $6.25 for Medicare tax, her net pay was

Accepted Answer

The answer of Lisa Ramos has a regular hourly rate...

Question 5

Sabrina Duncan had gross earnings for the pay period ending 10/15/13 of $5,785. Her total gross earnings as of 9/30/13 were $104,500. If Social Security taxes are 6.2% on a maximum earnings of $106,800 per year, Sabrina's Social Security withheld from her 10/15/13 paycheck would be:

Accepted Answer

The answer of Sabrina Duncan had gross earnings for the...

Question 6

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

Accepted Answer

The answer of Which of the following is NOT typically...

Question 7

It is best not to pay wages and salaries by

Accepted Answer

The answer of It is best not to pay wages...

Question 8

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:

Accepted Answer

The answer of Jill Monroe earns $25 per hour. She...

Question 9

The column totals in a payroll register

Accepted Answer

The column totals in a payroll register are used in the journal entry to record the payroll. The totals represent the amounts of the payroll expenses that need to be recorded in the general ledger accounts, and are therefore an important part of the payroll accounting process.

Question 10

An employee whose regular hourly rate is $18 and whose overtime rate is 1.5 times the regular rate worked 44 hours one week. The employee's gross pay was

Accepted Answer

The answer of An employee whose regular hourly rate is...

Question 11

Jason McCurdy has a regular hourly rate of $10.75. During a two week period, he worked 80 hours and had deductions of $110 for federal income tax, $53.50 for social security tax, and $12.50 for Medicare tax. His net pay was

Accepted Answer

The answer of Jason McCurdy has a regular hourly rate...

Question 12

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

Accepted Answer

Federal income tax does not have a cap on the amount of annual earnings subject to the tax, unlike Social Security tax and unemployment taxes, which have wage base limits.

Question 13

Each type of deduction made from the employees' earnings is recorded in a separate

Accepted Answer

The answer of Each type of deduction made from the...

Question 14

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

Accepted Answer

The individual earnings record typically contains all the details related to an employee's earnings, deductions, and net pay throughout the year. The payroll register is a summary of all employee pay and may not contain all necessary details for each employee. The general journal and Wages Expense account in the general ledger do not typically contain employee-specific information.

Question 15

When checks are issued to employees after the entry to record the payroll has been made, the accountant would

Accepted Answer

When checks are issued to employees after the entry to record the payroll has been made, the accountant should debit Salaries and Wages Payable and credit Cash. This entry will reduce the Salaries and Wages Payable account by the amount that has been paid and increase the Cash account by the same amount. There is no need to debit the tax payable accounts or the expense accounts again, as they have already been recorded in the initial entry to record payroll.

Question 16

Publication 15, Circular E contains withholding information

Accepted Answer

The answer of Publication 15, Circular E contains withholding information
...

Question 17

The Payroll Tax Expense account is used to record which of the following taxes?

Accepted Answer

The Payroll Tax Expense account is used to record taxes related to employment, including Social Security and Medicare taxes (also known as FICA taxes) and Federal unemployment compensation tax. Federal Income Tax, State Income Taxes, and Sales Taxes are not typically recorded in the Payroll Tax Expense account.

Question 18

The Social Security Tax Payable account will normally have a(n)

Accepted Answer

The Social Security Tax Payable account is a liability account, which means it has a credit balance. This account is used to track the amount of Social Security taxes that are owed by the employer but not yet paid. When the employer makes the required Social Security tax payments, the balance in this account will decrease.

Question 19

The amount debited to Wages Expense when a payroll is recorded is the

Accepted Answer

The amount debited to Wages Expense when a payroll is recorded is the total gross earnings, which includes all wages earned by employees before any deductions for taxes or other withholdings are made.

Question 20

Assuming a Medicare tax rate of 1.45% and monthly gross wages of $2,500, the amount recorded in Medicare Tax Payable for one quarter for the employee's payroll deduction is

Accepted Answer