Payroll Accounting(Quick Test #1)

1. FICA consists of 1) the __________ __________ tax, and 2) the __________ tax.

2. The gross pay of an hourly-paid employee is referred to as __________.

3. Managers and executives are likely to be paid a __________ instead of an hourly rate of pay.

4. The usual rate (net of state credits) for federal unemployment tax is__________% on the first $__________ of each employee’s annual wages.

5. A self-employed, nonemployee is referred to as an __________ contractor.

6. EIC is the acronym for __________ Income Credit.

7. EFTPS is the acronym for __________ Federal Tax Payment System.

8. An employee may claim an __________ from income tax withholding if the employee had no income tax liability last year and expects no income tax liability this year.

9. FICA is the acronym for Federal Insurance __________ Act.

10. When an employer has to pay time and one-half, the “one-half” is referred to as the overtime __________.

11. Gross wages minus withholdings is referred to as __________ pay or take-home pay.

12. The employer’s portion of Social Security and Medicare taxes plus the federal and state unemployment taxes are referred to as the employer’s payroll tax __________.

13. Health insurance provided to retired employees and paid for by the employer is an example of a __________ benefit other than pensions.

14. Each __________, employers who pay wages subject to income tax withholding or Social Security and Medicare taxes must file Form 941 (unless required to file Form 944).

15. Which of the following is not withheld from an employee’s wages?

16. An employee earns $180,000 in the current year. The withholding of which tax is not computed on the entire $180,000?

17. The federal unemployment tax is paid by the __________.

18. To best comply with the matching principle, an employer should record vacation expense and the related liability when it is __________ the employee.

19. The annual wage and tax statement given to employees by January 31 is __________.

20. The federal form in which the employee informs the employer regarding the withholding of federal income taxes is __________.

21. The annual statement given to a self-employed person by January 31 for services performed for a company in the previous year is __________.

22. The federal form that summarizes the information on the employees’ W-2 forms is __________.

23. Generally, if a company has the right to control the services provided by a worker, the worker is an __________.

24. The federal form associated with earned income credit advance payments is __________.

25. If a company’s payroll tax liability is more than $100,000 during a specified period, the company must deposit the amounts within a __________.

26. In 2024, employers should not withhold Social Security tax after the employee reaches __________ in Social Security wages.

27. In 2024, employers should not withhold Medicare tax after the employee reaches __________ in Medicare wages.

28. In 2024, the Social Security tax (not including the Medicare tax) is withheld from an employee with annual wages of $50,000 at which rate?

29. The Medicare tax rate (excluding the Social Security tax) is withheld from an employee with annual wages of $50,000 at which rate?

30. The combination of the employee’s withholding and the employer’s portion of both the Social Security and Medicare taxes for an employee having annual wages of $50,000 in the year 2024 is __________.

31. Generally, unemployment compensation programs are administered by the __________.

32. Generally, the state unemployment tax will likely be __________ than the net rate of the federal unemployment tax.

33. Temps from an employment agency are employees of the __________.

34. An employee has a pay rate of $10 per hour and is paid weekly. The employee worked 43 hours during a recent week. The employee’s gross wages for the week will be $__________.

35. The Social Security tax withholding will be $__________.

36. The Medicare tax withholding for 2024 will be $__________.

37. The federal unemployment tax withholding for 2024 is $__________.

38. The total of the Social Security and Medicare taxes withheld from the employee in the year 2024 will be $__________.

39. The total of the employee and employer Social Security and Medicare taxes to be remitted to the U.S. government for 2024 for this employee is $__________.

40. The employer’s expense for Social Security, Medicare, and federal unemployment tax for this employee for the year 2024 is $__________.