Employees Are Not Subject To

Question: Assume employees’ weekly gross earnings are $80,000, federal income tax withholding is $22,634.50, and FICA taxes are $11,920 in total for the employee and the employer. Determine the net amount to be paid to employees.

a.$45,445.50

b.$57,365.50

c.$51,405.50

d.$68,080.00

Answer: c.$51,405.50

Note:$80,000 - $22,634.50 - ($11,920/2) = $51,405.50

Question: Which of the following taxes are employees not subject to?

Medicare tax
b. Federal withholding tax
c. Social security tax
d. State unemployment tax
Answer: d. State unemployment tax
Note: Employees are not subject to state unemployment tax.
Question:
Answer: c.$1,934
Note:$1,200 + $300 + ($7,000 × 0.008) + ($7,000 × 0.054) = $1,934
Question:
Answer: b. payroll checks should be distributed by each employee’s supervisor.
Note: Restricting access to the check signing machine to authorized employees is a payroll control.
Question: All of the following are other deductions that employees may choose to have deducted from their gross pay except
a .FICA.
b. life insurance.
c. retirement savings.
d. dental insurance.
Answer:
Question:
Answer: C. debit to Salaries Expense for $16000
Note: Salaries Expense is increased (debited) by the amount of gross earnings ($16,000).
Question:
Answer: d. $9203
Note:$5,800 + $1,450 + ($31,500 × 0.008) + ($31,500 × 0.054) = $9,203
Question: Major elements in a payroll system are
a. payroll checks.
b. a payroll register.
c. employees’ earnings records.
d. All of these choices are correct.
Answer: d. All of these choices are correct
Note: Payroll registers, employees’ earnings records, and payroll checks are important elements of a payroll system.
Question:
Answer: b. debit to Payroll Tax Expense for $798
Note: The journal entry to record payroll tax expense does not affect Salaries Payable.
Question:
Answer: a. credit to Employees Federal Income Taxes Payable for $2,500.
Note: Salaries Payable is increased (credited) for total net earnings.