Questions and Answers of Payroll Accounting

In this last phase of your work on the Continuing Payroll Problem A, you will record the amounts withheld for group and health insurance and calculate the net pay for each employee. Refer to the
In this last phase of your work on the Continuing Payroll Problem B, you will record the amounts withheld for group and health insurance and calculate the net pay for each employee. Refer to the
Adams, Inc., pays its employees’ weekly wages in cash. A supplementary payroll sheet that lists the employees’ names and their earnings for a certain week is shown below. Complete the payroll
In Oregon, employers who are covered by the state workers? compensation law withhold employee contributions from the wages of covered employees for the workers? benefit fund at the rate of 1.2? for
The following unemployment tax rate schedule is in effect for the calendar year 2020 in State A, which uses the reserve-ratio formula in determining employer contributions:Reserve Ratio
Karlson Software Company is located in State H, which enables employers to reduce their contribution rates under the experience-rating system. From 2006 to 2015, inclusive, the company?s total
Applebaum Security Company is located in State H, which enables employers to reduce their contribution rates under the experience-rating system. From 2006 to 2015, inclusive, the company?s total
Purnell, Inc., has a semimonthly payroll of $53,900 on September 15, 20--. The total payroll is taxable under FICA Taxes—HI; $50,400 is taxable under FICA Taxes OASDI; and $7,300 is taxable under
As of June 30, 2019 (the computation date for the 2020 tax rate), Amanda Company had a negative balance of $1,015 in its unemployment reserve account in State A. The company’s average payroll over
As of June 30, 2019 (the computation date for the 2020 tax rate), Sanchez Company had a negative balance of $1,190 in its unemployment reserve account in State A. The company’s average payroll over
The following unemployment tax rate schedule is in effect for the calendar year 2020 in State A, which uses the reserve-ratio formula in determining employer contributions:Reserve Ratio
In 2019:a. Which state had the widest range of SUTA tax rates for employers?b. Which state paid the highest weekly maximum benefit (excluding dependency allowances) to qualified unemployed workers?c.
Lake Community College gives its faculty the option of receiving the balance of their contract at the end of the semester on May 17, 20--. The faculty can receive one lump-sum payment instead of
What is a personal allowance? What was the amount of a personal allowance for 2019?
What are the self-employment tax rates for 2019? Explain how the tax is computed.
The biweekly taxable wages for the employees of Wee-Ones Foods follow. Compute the FICA taxes for each employee and the employer?s FICA taxes. FICA Taxes Biweekly Taxable Wages Employee No. Employee
In determining the existence of an employer/employee relationship, what tests are applied by the U.S. Department of Labor?
Under the Affordable Care Act, which employers are required to provide insurance coverage for all full-time employees and their dependents?
In Oregon, employers who are covered by the state workers? compensation law withhold employee contributions from the wages of covered employees for the workers? benefit fund at the rate of 1.2? for
Which of the following describes the primary difference between a 401(k) and a 403(b) retirement plan?
Nora Wade is an employee of WGLO-TV, where she is an on-air news presenter. Which of the following would likely be fringe benefits that her employer would provide because they would be needed as part
Simon Cunningham earns $16.45 per hour at Transist Electronics. Compute his pay under both the hundredth-hour and quarter-hour systems. The company is considering switching from a quarter-hour method
Doreen George works as a stocker at Dender Factory Outlet who is paid on an hourly basis and earns $12.45/hour. During a one week period he works 39 hours and 19 minutes. How much would her gross pay
Rosalie Moran is a waitress at a restaurant in Washington, D.C. named Molly’s Diner. She earns the tipped minimum wage. During a 40-hour work week, how much must she earn in tips to satisfy the
Julie Stevens is a tipped employee at the Neovee Resort in Hawaii. What is the minimum tipped wage for her area?
Using the information from P6-6A and P6-7A for Veryclear Glassware (California Employer Account Number 999-9999-9), complete the following State of California Form DE-9, Quarterly Contribution and
Cameron Levitt is the payroll accountant for Glowing Yoga. He is preparing a presentation about Section 125 cafeteria plans. Which of the following items may qualify for inclusion in a cafeteria plan?
Juan Potter is an employee of Convergent Technologies whose job is strictly based in the company’s office. His employer has authorized his use of the company vehicle for commuting purposes, as
The Content Rabbit Graphics Company paid its 25 employees a total of $863,428.49 during 2017. Of these wages, $5,400 is exempt fringe benefits (Section 125 cafeteria plans) and $9,850 is exempt
Very clear Glassware is a new business owned by Samantha Peoples, the company president. Her first year of operation commenced on April 1, 2018. What schedule depositor would she be for the first
Using the information from P6-4A, compute the employer’s share of the taxes. The FUTA rate for Kentucky for 2018 is .6% on the first $7,000 of employee wages, and the SUTA rate for the company in
Joseph Farmer earned $128,000 in 2018 for a company in Kentucky. He is single with 1 withholding allowance and is paid annually. Compute the following employee share of the taxes using the percentage
While Lemon Cameras has the following employees:Employee nameAnnual salaryMia Haskell$26,000Viktor Papadopoulos$35,000Puja Anderson$32,000Cady Billingmeier$29,000Carl Johnson$46,000White Lemon
Rosa Pierce is a payroll clerk at Hot Tree Hand Tools. She receives a written notice from the IRS notifying the company that they are semiweekly schedule depositors. How is the deposit schedule
For the February 9, 2018, pay period, use the gross pay totals from the end of Chapter 4 and compute the net pay for each employee. Once you have computed the net pay (using the wage-bracket tables
Jane Heinlein is the payroll accountant for Sia Lights of Carter, Nebraska. The employees of Sia Lights are paid biweekly. Her employee, Melinda Gunnarson, comes to her on September 14 and requests a
The following employees of Memory Bytes of Titusville, Washington, are paid in different frequencies. Some employees have union dues or garnishments deducted from their pay. Calculate their net pay.
Hark Enterprises in Taft, Wyoming, has six employees who are paid semimonthly. Calculate the net pay from the information provided below for the August 15 pay date. Assume that all wages are subject
Compute the net pay for Will Barrett and Eric Martin. Assume that they are paid biweekly, subject to federal income tax (using the wage-bracket method in Appendix C) and FICA taxes, and have no other
Scout Freeman is the Vice President for Marketing at Sun Field Industries. She earns $140,000 annually and is paid on a semimonthly basis. As of October 31, Scout has year-to-date earnings of
Frances Newberry is the payroll accountant for Pack-it Services of Jackson, Arizona. The employees of Pack-it Services are paid semimonthly. An employee, Glen Riley, comes to her on November 6 and
Tooka’s Trees in Auburn, Tennessee, has six employees who are paid biweekly. Calculate the net pay from the information provided below for the November 15 pay date. Assume that all wages are
Compute the net pay for Karen Wilson and Katie Smith. Assume that they are paid biweekly, subject to federal income tax (using the wage-bracket method), FICA taxes, and have no other deductions from
At what income level do employees contribute an additional percentage to their Medicare tax deduction?
What are the two methods payroll accountants use to determine federal income tax withholding amounts?
Teddy Harrington is the new payroll clerk with B&H Farms. As he prepares to use the wage-bracket tables to determine federal income tax withholdings, what information does he need for each
Lyle Ingram, the payroll accountant, needs to compute net pay for the employees for Hay Industries. Place the following steps in the proper order.e. Determine gross payb. Subtract pre-tax deductions
Why are union dues not considered a garnishment?
Why are garnishments deducted on a post-tax basis?
What are two examples of garnishments?
When should the percentage method be used instead of the wage-bracket method?
How does the percentage method work?
Name four states that do not have an income tax for employees.
What are the four factors that affect how much federal income tax is withheld from an employee’s pay?
Although the company has already established medical and retirement plan benefits, Toni Prevosti wants to consider other benefits to attract employees. As the company’s accountant, you have been
Malcolm’s employer offers him the option to use the cents-per-mile rule instead of the lease value rule for 2018. Which method will yield the lower gross income for Malcolm?
Malcolm Figueroa is a sales employee of Carefree Pools and Spas, Inc. During 2018, he was issued a company car with a fair market value of $35,000. He drove a total of 22,000 miles, used the car for
Arla Dodson is the payroll accountant for Penn & Associates Investments. The company owner decided on December 15, 2018 that he would invoke the special accounting rule. By what date does Arla
Gwen Evans is an employee at Findley Street Financial, where she earns an annual salary of $125,500, paid semimonthly. She has the following fringe and voluntary benefits:Medical insurance, $150 per
Doug Barton is an employee at Artlee Collections. He earns a salary of $36,000 per year, paid semimonthly, and has a child support garnishment. Assuming that Doug’s disposable income is 80 percent
Janice Lucas is the president of Miller Custom Coffee Roasters. She drives a 2017 Mercedes E300 with a fair market value of $57,500. The lease value is $14,750. Janice reported that she drove 30,200
Rodney Atwater is a sales representative for American Silk Mills. Because he visits customer sites, he has a company car. He drove 25,500 miles during 2018, of which he reported 15 percent was
Jewel Lyman is an employee in the office of Salvaggio & Wheelers, Attorneys at Law.She received the following benefits during 2018:Medical insurance, $250 per monthCommuter pass, $500 per
Kareem Espinal is employed as a copywriter at Jacksaw Publications. He is receiving education assistance of $10,000 per year from his employer to complete his bachelor’s degree from an accredited
Todd Redden is a supervisor at Pinebank Construction. He contributes $2,400 annually to a FSA and has medical insurance that has a $250 monthly premium. He earns a salary of $64,000 and is paid
Orlando Collier is employed as a concierge at Strawberry Lodge, an upscale resort in the Adirondack Mountains. He wants to know how much of his pay is deducted for voluntary fringe benefits. Where
Will Barrett and Eric Martin are looking at the company’s health care options and trying to determine what their taxable income will be if they sign up for the qualified cafeteria plan offered by
Alejandro McCarthy is an employee of Shiloh Baker. His regular commute includes paying a toll for a portion of his route. Shiloh Bakery offers commuter passes as a fringe benefit. What is the maximum
What is the annual maximum amount that an employee may contribute to a flexible savings arrangement, before it becomes taxable income?
Karen Wilson and Katie Smith are looking at the company’s health care options and trying to determine how much their net pay will decrease if they sign up for the qualified cafeteria plan offered
Which workers are covered by FLSA provisions?
What is a certified payroll? Which companies must use it?
Gavin Range is the payroll accountant for Comptech Industries. His employer decided to use the special accounting rule for 2018. Which months may be included in the special accounting rule?
Christine Boone is an employee at Americamp Vehicles. She earns a salary of $34,750 annually, paid biweekly. She contributes to the following fringe benefits and other deductions:Medical insurance,
Geraldine Wolfe is a supervisor at Fantastigifts. She has an annual salary of $45,000, paid biweekly, and a garnishment for consumer credit of $375. Assuming that her disposable income is 80 percent
Brent Bishop is the vice president of operations for Southern Sweets Bakery. He drives a 2017 Toyota Prius Prime as his company car, and it has a fair market value of $37,500. The annual lease for
Judi Pendegrass is an account representative at Ever Pharmaceuticals. She has a company car for customer visits, which she uses to commute from work to home on Friday nights and from home to work on
Yvette Bradbury is an account representative at Commerce Savings Bank, earning $42,000 annually, paid semimonthly. She contributes 3 percent of her gross pay to her qualified 401(k) plan on a pre-tax
Joe Ramsey is a computer programmer at Biosphere Communications. He approaches you, the payroll accountant about his garnishment for child support, claiming that he wishes to remit it personally
By what date must a company declare the value of noncash benefits used in 2018?
How is disposable income computed?
Ana Cole is an employee of Wilson In-Home Healthcare Services. She is issued a company vehicle so that she may drive to customer sites. Which of the general valuation rules would be appropriate to
Dallas Wong is an employee who receives education assistance in the amount of $10,250 per year. How is the amount treated for tax purposes?
What is the significant difference between flexible spending arrangements (FSAs) and health savings accounts (HSAs)?
What are the examples of qualified insurance benefits?
Caroline Watts is an employee of Lavender Creek Farm. She has come to you, the payroll accountant, for advice about her health insurance premiums, specifically if she should have them deducted
How often must employers deposit taxes associated with taxable fringe benefits?
How does the special accounting rule affect the withholding of benefits?
How do post-tax deductions differ from pre-tax deductions?
What are the ways that the value of a company vehicle as a fringe benefit is determined?
What are three examples of excluded fringe benefits?
How does an FSA affect an employee’s taxable wages?
What are the four categories of cafeteria plans?
What are two types of insurance that may be deducted pre-tax under a cafeteria plan?
What are two reports associated with fringe benefits?
Approximately what percentage of employee compensation includes fringe benefits?
Why do companies offer fringe benefits to their employees?
The first day of work for Prevosti Farms and Sugarhouse for all employees is February 5, 2018. February 9 is the end of the first pay period and includes work completed during the week of February
Thomas Campbell owns Veiled Wonders, a firm that makes window treatments. Some merchandise is custom-made to customer specifications, and some is mass-produced in standardized measurements. He has
Annie Adams is a 19-year-old accounting clerk with Quijen Accounting Solutions. During the first month of her employment with a firm, she noticed that she received $369.75 for her first semimonthly

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