Payroll Practice Quiz
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Accounting
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Jan 9, 2024
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Payroll Practice Quiz
Grade received 100%
1.
Question 1: The following could be payroll deductions on an employee’s paystub, except:
1 / 1 point
FICA
Garnishment
SUTA
Health insurance
Correct
Correct! SUTA is an employer-paid tax, not an employee-paid tax.
2.
Question 2: The following are reasons for running payroll reports, except:
1 / 1 point
You might need to issue a report on a specific employee if there is a dispute on hours paid
They help inform decision making and tracking
They produce financial statements that are helpful
You might be asked to update the business owner on the cost of payroll
Correct
Correct! Payroll reports can help provide information that is used to build a financial statement, but they themselves do not produce financial statements.
3.
Question 3: The following are examples of employee-related items on a paystub, except:
1 / 1 point
Deductions
Pay Period
Gross Pay
FUTA
Correct
Correct! Recall that FUTA is a federal unemployment tax and is paid by the employer. It should not show up on a paystub, but if it does, it does not impact the pay or wages of the employee.
4.
Question 4: The following are items that should be included in a payroll policy, except:
1 / 1 point
What deductions and benefits will impact pay.
When employees will be paid
Where payroll will be submitted
How employees will be paid
Correct
Correct! Where payroll will be submitted is a part of the payroll process, but not necessary for the payroll policy.
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Related Questions
1.Why do the employee deductions display as
negative amounts on the Payroll Entry
window
2.What are the gross pay amounts for
Brandee M. Nunnley and for Drake V. Carter?
Include Mr. Carter's overtime pay.
3.What is the net pay for Brandee M. Nunnley
and for Drake V. Čarter? Include Mr. Carter's
overtime pay.
4.What happens when payroll entries are
posted?
what informarion ia missing
arrow_forward
·
Prepare and use a payroll register including Social Security and Medicare withholdings.
Use =IF and =ROUND to design the Social Security tax and union dues formulas.
Record journal entries for payroll, employer's tax liability, and payment of payroll taxes.
Identify behavior patterns among payroll taxes over time.
Alter the worksheet to include an additional employee.
Create a chart showing the percentage of an employee's gross pay that is withheld for taxes
and other such deductions, and how much is left over as net pay.
PROBLEM DATA
Reno Graphics has five employees, and they are paid at the end of each month. Payroll data for
November are as follows:
Employee
Jones
Miller
Smith
Williams
Zlotorzynski
Gross Pay for
November
$9,000
1,530
1,210
12,000
4,200
Federal Income
Tax Withheld
$1,948
137
89
Cumulative Gross Pay at
October 31
$?
15,570
6,550
2,788
661
Other information (using 2011 rates) is as follows:
a. Social security taxes are 4.2% of monthly gross pay up to a cumulative…
arrow_forward
Felipe's Mexican Restaurant incurred salaries expense of $59,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries,
$16,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,400), life insurance (cost to the company, $400), and retirement
benefits (cost to the company, 5% of salaries expense).
A (Click the icon to view payroll tax rate information.)
More info
Requirements
For all payroll calculations, use the following tax rates and round amounts to the
nearest cent:
1. Journalize Felipe's expenses for employee benefits and for payroll taxes.
Explanations are not required.
Employee:
OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to
$200,000, 2.35% on earnings above $200,000.
2. What was Felipe's total expense for 2024 related to payroll?
Employer:
OASDI: 6.2% on first $132,900 earned per…
arrow_forward
Which of the following is true about
employee pay methods? (You may select
more than one answer. Single click the
box with the question mark to produce a
check mark for a correct answer and
double click the box with the question
mark to empty the box for a wrong
answer. Any boxes left with a question
mark will be automatically graded as
incorrect.)
O Employees must request the
transfer of payroll earnings to their
paycard each period.
Employees must be able to
access the full amount of their net
pay on the pay date.
O Employees do not need to own a
bank account to receive their pay via
direct deposit.
O Employers must keep a record of
all pay disbursements.
arrow_forward
Identify all correct statements concerning payrolls andrelated payroll costs.a. Both employers and employees pay Social Security andMedicare taxes.b. Workers’ compensation premiums are withheld fromemployees’ wages.c. An employer’s total payroll costs usually exceed totalwages expense by about 71⁄2 percent.d. Under current law, employers are required to pay SocialSecurity taxes on employees’ earnings, but they are notrequired to pay for health insurance.
arrow_forward
Compute the net pay for each employee and answer the additional requirements that follow:
Deductions
Employee
Basic Pay
SSS
Philhealth
Withholding Tax
Ericka Bilango
40,300.00
581.30
550.00
100.00
P 3,933.84
Alani Ching
37,600.00
581.30
517.00
100.00
3,267.09
Audrey Tan
35,500.00
581.30
488.13
100.00
2,749.31
1. How much is the total Salaries Expense?
2. How much is the total payroll deductions?
3. How much is the total credit to Cash upon payment of salaries? Is this the same as the
take-home pay?
Pag-IBIG
arrow_forward
To determine how much to
deduct from the gross pay of
Jason Parker, an employee of
Jensen Ltd., one would look at
the
earnings record.
O Form TD1.
O payroll register.
O Form T4.
arrow_forward
activity
Investigating Payroll Deductions
Read the problem and answer the question.
An employer is required to withhold 7.65 percent of the first $62,700 of an
employee's income for FICA taxes. Suppose you earn $50,000. How much
will be withheld for FICA?
arrow_forward
Required information
[The following information applies to the questions displayed below.]
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA
Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid
to its employee.
a.
b.
C.
Gross Pay through Gross Pay for
September
August 31
$ 5,200
$ 2,400
2,700
132, 100
Assuming situation (a), prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities for
this employee. The employee's federal income taxes withheld by the employer are $90 for this pay period.
Complete this question by entering your answers in the tabs below.
Taxes to be
Withheld From
Gross Pay
2,800
8,700
General
Journal
The employee's federal income taxes withheld by the employer are $90 for this pay period. Assuming situation (a), compute
the taxes to be withheld from gross pay for this employee.…
arrow_forward
Factory Payroll:
(To record salaries and wages paid and the employee payroll deductions)
(To record employer payroll taxes)
Sales Payroll:
(To record salaries and wages paid and the employee payroll deductions)
|| |
arrow_forward
Select the best answer.
What is the maximum amount of tax credits available to employers for paid leave provided to employees under
the FFCRA?
100% of the qualifying payments made to employees who took leave for a qualifying reason,
A.
thus giving the employer full reimbursement
B. 100% of the payments made for the first two weeks of paid leave and 2/3ds of the payments
made for the additional ten weeks
C. 100% of the payments made to full-time employees only
100% of the payments made to employees who were employed for at least 30 days prior to
D.
the leave
Submit Answers
arrow_forward
Problem #3
Ernesto Enterprises uses the wage-bracket method to determine federal income tax withholding on its
employees. Find the amount to withhold from the wages paid each employee.
Employee
Filing Status No. of Withholding
Payroll Period
Wage
Amount to Be
Allowances
w = Weekly
Withheld
S = Semimonthly
M= Monthly
D= Daily
Lily Troon
MFJ
N/A
$1,250
Barry Ortega
N/A
695
Pat Lopez
N/A
915
Rex Kim
MFJ
N/A
M
3,070
Ruth Horace
MFJ
N/A
M
2,730
Tom Gleam
MFJ
N/A
1,200
Tom Abreu
N/A
115
Holly Sanchez s
Kathy Nee
N/A
N/A
2,040
MFJ
M
3,500
arrow_forward
Calculation and Journal Entry for Employer Payroll Taxes
1. Calculate the employer's payroll taxes expense. Round your answer to the nearest cent.
2. Prepare the journal entry as of March 12, 20--, assuming that FUTA tax is 0.6%, SUTA tax is 5.4%, Social Security tax is 6.2%, and Medicare tax is 1.45%. If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank.
Earnings for several employees for the week ended March 12, 20--, are as follows:
Taxable Earnings
Employee Name
CurrentEarnings
UnemploymentCompensation
SocialSecurity
Aus, Glenn E.
$720
$190
$720
Diaz, Charles K.
370
360
370
Knapp, Carol S.
1,240
-
1,240
Mueller, Deborah F.
850
125
850
Yeager, Jackie R.
900
35
900
arrow_forward
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Related Questions
- 1.Why do the employee deductions display as negative amounts on the Payroll Entry window 2.What are the gross pay amounts for Brandee M. Nunnley and for Drake V. Carter? Include Mr. Carter's overtime pay. 3.What is the net pay for Brandee M. Nunnley and for Drake V. Čarter? Include Mr. Carter's overtime pay. 4.What happens when payroll entries are posted? what informarion ia missingarrow_forward· Prepare and use a payroll register including Social Security and Medicare withholdings. Use =IF and =ROUND to design the Social Security tax and union dues formulas. Record journal entries for payroll, employer's tax liability, and payment of payroll taxes. Identify behavior patterns among payroll taxes over time. Alter the worksheet to include an additional employee. Create a chart showing the percentage of an employee's gross pay that is withheld for taxes and other such deductions, and how much is left over as net pay. PROBLEM DATA Reno Graphics has five employees, and they are paid at the end of each month. Payroll data for November are as follows: Employee Jones Miller Smith Williams Zlotorzynski Gross Pay for November $9,000 1,530 1,210 12,000 4,200 Federal Income Tax Withheld $1,948 137 89 Cumulative Gross Pay at October 31 $? 15,570 6,550 2,788 661 Other information (using 2011 rates) is as follows: a. Social security taxes are 4.2% of monthly gross pay up to a cumulative…arrow_forwardFelipe's Mexican Restaurant incurred salaries expense of $59,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $16,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,400), life insurance (cost to the company, $400), and retirement benefits (cost to the company, 5% of salaries expense). A (Click the icon to view payroll tax rate information.) More info Requirements For all payroll calculations, use the following tax rates and round amounts to the nearest cent: 1. Journalize Felipe's expenses for employee benefits and for payroll taxes. Explanations are not required. Employee: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. 2. What was Felipe's total expense for 2024 related to payroll? Employer: OASDI: 6.2% on first $132,900 earned per…arrow_forward
- Which of the following is true about employee pay methods? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) O Employees must request the transfer of payroll earnings to their paycard each period. Employees must be able to access the full amount of their net pay on the pay date. O Employees do not need to own a bank account to receive their pay via direct deposit. O Employers must keep a record of all pay disbursements.arrow_forwardIdentify all correct statements concerning payrolls andrelated payroll costs.a. Both employers and employees pay Social Security andMedicare taxes.b. Workers’ compensation premiums are withheld fromemployees’ wages.c. An employer’s total payroll costs usually exceed totalwages expense by about 71⁄2 percent.d. Under current law, employers are required to pay SocialSecurity taxes on employees’ earnings, but they are notrequired to pay for health insurance.arrow_forwardCompute the net pay for each employee and answer the additional requirements that follow: Deductions Employee Basic Pay SSS Philhealth Withholding Tax Ericka Bilango 40,300.00 581.30 550.00 100.00 P 3,933.84 Alani Ching 37,600.00 581.30 517.00 100.00 3,267.09 Audrey Tan 35,500.00 581.30 488.13 100.00 2,749.31 1. How much is the total Salaries Expense? 2. How much is the total payroll deductions? 3. How much is the total credit to Cash upon payment of salaries? Is this the same as the take-home pay? Pag-IBIGarrow_forward
- To determine how much to deduct from the gross pay of Jason Parker, an employee of Jensen Ltd., one would look at the earnings record. O Form TD1. O payroll register. O Form T4.arrow_forwardactivity Investigating Payroll Deductions Read the problem and answer the question. An employer is required to withhold 7.65 percent of the first $62,700 of an employee's income for FICA taxes. Suppose you earn $50,000. How much will be withheld for FICA?arrow_forwardRequired information [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. a. b. C. Gross Pay through Gross Pay for September August 31 $ 5,200 $ 2,400 2,700 132, 100 Assuming situation (a), prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $90 for this pay period. Complete this question by entering your answers in the tabs below. Taxes to be Withheld From Gross Pay 2,800 8,700 General Journal The employee's federal income taxes withheld by the employer are $90 for this pay period. Assuming situation (a), compute the taxes to be withheld from gross pay for this employee.…arrow_forward
- Factory Payroll: (To record salaries and wages paid and the employee payroll deductions) (To record employer payroll taxes) Sales Payroll: (To record salaries and wages paid and the employee payroll deductions) || |arrow_forwardSelect the best answer. What is the maximum amount of tax credits available to employers for paid leave provided to employees under the FFCRA? 100% of the qualifying payments made to employees who took leave for a qualifying reason, A. thus giving the employer full reimbursement B. 100% of the payments made for the first two weeks of paid leave and 2/3ds of the payments made for the additional ten weeks C. 100% of the payments made to full-time employees only 100% of the payments made to employees who were employed for at least 30 days prior to D. the leave Submit Answersarrow_forwardProblem #3 Ernesto Enterprises uses the wage-bracket method to determine federal income tax withholding on its employees. Find the amount to withhold from the wages paid each employee. Employee Filing Status No. of Withholding Payroll Period Wage Amount to Be Allowances w = Weekly Withheld S = Semimonthly M= Monthly D= Daily Lily Troon MFJ N/A $1,250 Barry Ortega N/A 695 Pat Lopez N/A 915 Rex Kim MFJ N/A M 3,070 Ruth Horace MFJ N/A M 2,730 Tom Gleam MFJ N/A 1,200 Tom Abreu N/A 115 Holly Sanchez s Kathy Nee N/A N/A 2,040 MFJ M 3,500arrow_forward
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- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
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Accounting
ISBN:9781337679503
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Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
College Accounting (Book Only): A Career Approach
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