Questions and Answers of Payroll Accounting 2023

Latan is an employee of Giant Computers where the job responsibilities include selling computers and software to customers. Latan is married filing jointly with two dependents under 17. The annual
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Enlightened Eats in Anchorage, Alaska, has six employees who are paid semimonthly. Calculate the net pay from the information provided below for the November 15 pay date. Assume that all wages are
August is an employee at Ruby Investments, with an annual salary of $92,500, paid biweekly. August has the following fringe and voluntary benefits:• Medical insurance: $400 per month• 401(k): 3
For the Critical Thinking problems, use the following steps to compute the gross-up amount:1. Compute tax rate: The tax rate on bonuses is 22 percent. Social Security (6.2 percent) and Medicare taxes
Want to know more about the concepts in this chapter? Check out these sites:https://www.irs.gov/pub/irs-pdf/p15t.pdf
Would you like to preview employee apps used to enter time and to calculate payroll disbursements? Check out these links:DOL Timesheet:
The employees of Ethereal Bank are paid on a semimonthly basis. Compute the FICA taxes for the employees for the November 30 payroll. All employees have been employed for the entire calendar year.
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What taxes are paid only by the employer in most states?
River Signorini works for New & Old Apparel, which pays employees on a semimonthly basis. River’s annual salary is $184,000. Calculate the following: Pay Date October 15 December 31 Prior
Which of the following are always employer-only payroll obligations?a. Social Security taxb. SUTAc. Employee income taxd. FUTA
Which of the following is/are true about FUTA obligations?a. FUTA is an employer-only tax.b. FUTA is subject to a 5.4 percent reduction based on employer and state factors.c. FUTA is subject to a
Mi Casa Restaurants of Las Cruces, New Mexico, has the following employees as of December 31: Employee Name A. Shelby M. Gomez C. Wardly E. Burgess S. Black Employee A. Shelby M. Gomez C. Wardly E.
Kai is the president of Zebra Antiques. An employee, Reese Francis, is due a raise. Reese’s current benefit analysis is as follows:Compute the benefit analysis assuming:• 3 percent increase in
Go to www.bizfilings.com/toolkit/sbg/tax-info/payroll taxes/unemployment.aspx and check out the unemployment tax laws for your state.
As of 2022, which of the following accurately represents the full FUTA rate and wage base?a. 0.6 percent, $147,000b. Varies by statec. 6.0 percent, $7,000d. 0.6 percent, $7,000
White Lemon Cameras has the following employees:White Lemon Cameras’s SUTA tax rate is 5.4 percent and applies to the first $8,000 of employee wages. What is the annual amount due for each
Of the IRS-stipulated lookback periods, which one(s) is/are the most commonly used?a. Monthlyb. Semiweeklyc. Next business dayd. Annually
Deep Mouse Designs has 22 employees within Denver City and County. The employees earned $12.56 per hour and worked 160 hours each during the month. The employer must remit $4.00 per month per
Want to know more about the concepts in this chapter? Go to one or more of the following sites. What are two or three things you notice about the information on the
Dylan Reyes is the accountant for Heads Up Hat Corporation. In preparing the payroll for the semimonthly pay period ending December 15, Dylan notices that some of the year-to-date executives’
El Arroyo North has 22 employees within Denver City and County. All the employees worked a predominant number of hours within the city. The employees earned $17.50 per hour and worked 160 hours each
The Putney Youth Theater has annual payroll taxes of $3,564 during the most recent lookback period. Which payroll deposit frequency will the company have, based on that lookback period?a. Quarterlyb.
Journey Clark earned $55,875 in 2022 for Weather Gurus in Concord, New Hampshire. Weather Gurus’s SUTA rate is 2.3 percent and has a wage base of $14,000 during 2022. Compute Weather Gurus’s
Check out the employer payroll tax estimation tool at https://gusto.com/tools/employer-tax-calculator
Phoenix Booker is a payroll clerk at Elemental Exports. The company receives a written notice from the IRS that the company is a monthly schedule depositor. How is the deposit schedule determined?a.
Greer Utsey earned $47,500 in 2022 for a company in Kentucky. Greer is single with one dependent under 17 and is paid weekly. Compute the following employee share of the taxes using the percentage
Shay Kinderton is a new payroll accountant with Sal’s Diamond Mart, Inc., in New York, NY. The company had a payroll tax liability of $49,580 during the most recent lookback period. For the quarter
Storm Murphy is the owner of Stormy Banana Films in West Hollywood, California. Stormy Banana Films had 15 employees with total annual wages of $214,750 (no one exceeded the Medicare tax surcharge or
Would you like to explore specific topics about being an employer in more depth?Check out https://www.employer.gov/
Match the amount of payroll tax liabilities from the lookback period with the appropriate tax deposit schedule.a. $205,684 payroll tax for one pay period 1. Monthlyb. $1,000 annual payroll taxes 2.
Which of the following is a form that must accompany all Form W-2s submitted to the Social Security Administration?a. Form 941b. Form 940c. Form W-3d. Form W-4
Peaceful Cat Pet Foods is a new business owned by Wren Hammond. The first year of operations commenced on January 1, 2022. What schedule depositor would the company be for the first year of
How often must a company report Form 940 earnings/withholdings?
Which form(s) should be prepared and filed by companies with employees and payroll tax liabilities exceeding $50,000 as of December 31, 20XX?a. Form 940b. Form W-4c. Form 941d. Form W-2
Veryclear Glassware is a new business owned by Skyler Peoples, the company president. Skyler’s first year of operation commenced on January 1, 2022. What schedule depositor would Veryclear
What are the penalties associated with the lack of reporting and remitting payroll taxes?a. Failure to reportb. Failure to filec. Failure to depositd. Failure to remit
Reese Castor, owner of Castor Corporation, is located at 1310 Garrick Way, Sun Valley, Arizona, 86029, phone number is 928-555-8842. The federal EIN is 20-1948348, and the state employer
Which of the mandatory taxes have a maximum wage base?
Rory Briggs is the accounting supervisor for Cheeky Cat Furnishings, which has chosen to maintain its payroll on an in-house basis. For this purpose, they have hired new accounting clerks. Which of
Which of the following represents the difference between the benefit analysis report and the annual total compensation report?a. The benefit analysis report is designed for review by company
Jealous Frog Toys paid its nine employees a total of $432,586.40 during 2021. All employees have worked there for the full calendar year and reached the FUTA wage base during the first quarter. Taxes
The Content Rabbit Graphics Company paid its 25 employees a total of $863,428.49 during 2021. Of these wages, $9,850 is exempt from retirement benefits (employer contributions to 401(k) plans). All
Which of the following represent(s) the purpose(s) of the labor distribution report?a. Accurate payroll cost allocation among departments.b. Explanation of individual employee costs.c. Evaluation of
Sunny Day Flooring has employees in its manufacturing, sales, and administrative departments. Which department will have the highest rate for its workers’ compensation insurance?a. Manufacturingb.
Park Mischner owns Old Times Buttons, which employs 20 people. Park wants to perform a benefits analysis report for one of the employees, Avery Bower, for the year. Avery’s benefits package is as
Oak Cove Resorts has eight employees. The owner wants to perform a benefit analysis report for the year for one of its employees, Tristan Cassidy. Tristan’s benefits package is as follows:Annual
Snow Mountain Equipment has 24 employees distributed among the following departments:The total annual payroll for Snow Mountain Equipment is $846,000. Compute the labor distribution based on an equal
For Snow Mountain Equipment in P6-13A, compute the labor distribution based on the number of employees per department:Sales: _____Factory: _____Administration: _____Data from in P6-13ASnow Mountain
Superfan Sportsgear has 30 employees distributed among the following departments: Sales: 7 Factory: 13 Administration: 10
What are three ways an employer could reduce their SUTA tax liability?
For Superfan Sportsgear in P6-13B, compute the labor distribution based on the number of employees per department:Sales: _____Factory: _____Administration: _____Data from in P6-13BSuperfan Sportsgear
What is the difference between Form W-2 and Form W-3? 22222 b Employer identification number (EIN) a Employee's social security number c Employer's name, address, and ZIP code d Control number e
Small Orange Fine Foods is a specialty grocery store. The employees are classified according to job titles for workers’ compensation insurance premium computation purposes.a. Based on the payroll
At Fox Furniture, employees are classified according to the job title for workers’ compensation insurance premium computation purposes.a. Based on the following payroll estimates as of January 1,
What are the employer’s payroll responsibilities as far as taxes and other withholdings are concerned?
What is meant by the term labor distribution?
What is a benefit analysis report?
Which of the following are categories contained in the fundamental accounting equation? (Select all that apply.)a. Liabilitiesb. Revenuesc. Expensesd. Owners’ equity
Which of the following principles are always true about financial accounting?a. Transactions are posted first to the General Ledger.b. Debits = Credits.c. Each transaction involves at least two
Using the payroll register from P7-1B for Appalachian Limited Home Design, complete the General Journal entry for the employer’s share of the payroll taxes for the March 11, 2022, pay date. Assume
Using the employee payroll entry from P7-3B, post the March 11 employee payroll end date for Appalachian Limited Home Design to the selected General Ledger accounts. The Posting Reference will be
Once recorded, where are the entries posted?
Using the employer payroll entry from P7-4B, post the employer’s share of payroll taxes for the March 11 pay period at Appalachian Limited Home Design to the appropriate General Ledger accounts.
Which amounts on the payroll register reduce Federal withholding tax but are not deducted for FICA tax computations?a. Charitable contributionsb. Nonqualified pre-tax insurancec. Retirement plan
What is true about expenses and liabilities?a. Expenses usually have the word “expense” in the account title.b. Expenses represent additional sums earned by the company.c. Liabilities represent
What information is contained in employees’ earnings records?
Using the employer payroll entry from P7-4A, post the employees’ share of the Social Security and Medicare taxes along with the employer’s share of payroll taxes for September 9 pay at White
Legends Leadworks is a monthly schedule depositor of payroll taxes. For the month of April 2022, the payroll taxes (employee and employer share) were as follows:Social Security tax: $5,386.56Medicare
Which of the following payroll-related accounts appear on the balance sheet?a. Wages and salaries payableb. Medicare tax expensec. Employee federal income tax payabled. FUTA tax expense
Candy Café has the following voluntary withholdings to remit as of September 30, 2022:AFLAC payable: $687.00Workers’ compensation insurance payable: $1,042.00401(k) contributions payable:
How are the payroll register and the employees’ earnings records related?
Which of the following accounts would appear on the balance sheet?a. Payroll taxes expenseb. 401(k) contributions payablec. 401(k) employer contributions expensed. Social Security tax payable
What type of account is debited for the gross pay?
The purpose of a labor report is to do what?a. Report an individual employee’s regular time and overtime.b. Reflect all expenses of a firm.c. Promote analysis of payroll expenses.d. Update managers
Pax Martinson is the controller for HHT Industries. Pax has been asked to explain the payroll accounts on the financial statements for the preceding month. What information is available about payroll
Which law governs the fiduciary responsibility that employers have with regards to employees’ payroll deductions?a. FICAb. FLSAc. ERISAd. ACA
You are interviewing for a position with Limelight Photography. The president of the company asks you to explain how payroll is both an expense and a liability of the company. How will you answer?
The following employees of Concordian Construction of Walla Walla, Washington, are paid biweekly. Some employees have union dues or garnishments deducted from their pay. Calculate their net pay. Use
The following salaried employees of Mountain Stone Brewery in Fort Collins, Colorado, are paid semimonthly. Some employees have union dues or garnishments deducted from their pay. Calculate their net
Marbury is the payroll accountant at All’s Fair Gifts. The employees of All’s Fair Gifts are paid semimonthly. Sten comes to Marbury on April 7 and requests a pay advance of $1,000, which Sten
A new employee at Financial Technologies, Ltd. is married with children and the spouse works. What are items that need to be considered for appropriate Form W-4 completion?a. Children’s agesb. Tax
Nkosi of Trade Secrets Importing is preparing payroll taxes manually. As Nkosi prepares to use the wage-bracket tables to determine federal income tax withholdings for each employee, which
You are the payroll accountant for Multi Winds Energy of Cornelius, North Carolina, whose employees are paid biweekly. An employee, L. Larson, comes to you on September 14 and requests a pay advance
Under which circumstances could the percentage method be used to determine federal income tax withholding amounts?a. When the employee’s taxable income exceeds the maximum amount on the appropriate
Milligan’s Millworks pays its employees weekly. Use the wage-bracket tables from Appendix C to compute the federal income tax withholdings for the following employees of Milligan’s Millworks.
Wolfe Industries pays its employees on a semimonthly basis. Using the wagebracket tables in Appendix C, compute the federal income tax deductions for the following employees of Wolfe Industries. No
Country Pet Industries has employees with pay schedules that vary based on job classification. Compute each employee’s federal income tax liability using the percentage method for manual payroll
Which of the following are steps in computing federal income tax withholding using the percentage method?a. Compute and record dependents.b. Apply the tax rate to the taxable portion of the
Name four states that do not have an employee income tax.
Which of the following is true about Social Security and Medicare taxes as they pertain to earnings limits?a. Social Security tax applies only to earnings greater than the wage base.b. Highly
Which of the following is true about Social Security and Medicare tax deductions?a. They are applied to the gross pay.b. Contributions to a 401(k) plan are exempt from these taxes.c. Medicare taxes
The employees of Lillian’s Interiors are paid on a semimonthly basis. Compute the FICA taxes for the employees for December 31, 2022, pay period. All employees are single and have been employed for
What is the Social Security wage base for 2022?a. $128,400b. $129,900c. $142,800d. $147,000
Scout is the vice president for marketing at Sun Field Industries, earns $165,000 annually, and is paid on a semimonthly basis. As of November 15, Scout has year-to-date earnings of $144,375. The
Which of the following statements are true about state and local income taxes?a. All states tax employee earnings.b. State tax rates on employee earnings vary among states.c. Certain states have no
Which of the following is true about state and local income tax?a. Pre-tax deduction rules for federal income tax are generally the same for state and local income taxes.b. Nine states do not have a
The owner of All Grains Bakery is considering offering additional payroll disbursal methods for the employees. Which of the following would be the safest for employees without a bank account?a.
Christensen Ranch operates in Pennsylvania. Calculate the state income tax for each employee using the state income tax rate of 3.07 percent. Assume that no pre-tax deductions exist for any employee.

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