101. An employer's federal unemployment taxes (FUTA) are reported:
A. Annually
B. Semiannually
C. Quarterly
D. Monthly
E. Weekly
102. An employee earnings report:
A. Is the W-2.
B. Is the W-4.
C. Is the cumulative record of an employee's hours worked, gross earnings, deductions, and net pay.
D. Shows the pay period dates, hours worked, gross pay, deductions, and net pay of each employee for every pay period.
E. Is used to compute the federal income taxes withheld from each employee's gross pay.
103. The main purpose of the wage bracket withholding table is to:
A. Compute social security withholding.
B. Compute Medicare withholding.
C. Compute federal income tax withholding.
D. Prepare the W-4.
E. Compute gross earnings.
104. A table that shows the amount of federal income tax to be withheld from an employee's pay is the:
A. Form 941.
B. Tax table.
C. Wage bracket withholding table.
D. W-2.
E. W-4.
105. A special bank account used solely for the purpose of paying employees is created by depositing the amount of each employees’ net pay into the account every pay period. This account is referred to as a(n):
A. Federal depository bank account.
B. Employee's individual earnings account.
C. Employees' bank account.
D. Payroll register account.
E. Payroll bank account.
106. If a company uses a special payroll bank account:
A. The company does not need to issue paychecks.
B. The company draws one check for the entire payroll on the regular bank account and deposits it in the payroll bank account.
C. The company must use a federal depository bank for the payroll.
D. There is no need for a payroll register.
E. There is no need to issue W-2's.
107. For the year ended December 31, 2013, Mason Company has implemented an employee bonus program equal to 7% of Mason's net income, which employees will share equally. Mason's net income (pre-bonus) is expected to be $3,500,000, and bonus expense is deducted in computing net income. What is the amount that needs to be recorded for estimated bonus liability for 2013?
A. $245,000
B. $144,118
C. $228,972
D. $50,000
E. $125,000
108. Mission Company has three employees:
|
Gross Pay through July
|
Gross Pay for August
|
|
Smith
|
$3,200
|
$1,000
|
|
Cain
|
25,800
|
3,500
|
|
Clark
|
94,600
|
13,100
|
|
|
The company is subject to the following taxes:
|
|
|
|
|
Tax
|
Rate
|
Applied To
|
FICA—Social Security
|
6.20 %
|
|
First $106,800
|
FICA—Medicare
|
1.45
|
|
All gross pay
|
FUTA
|
.80
|
|
First $7,000
|
SUTA
|
5.40
|
|
First $7,000
|
|
|
|
|
|
What are Mission Company’s total August payroll taxes for Smith?
A. $ 62.00
B. $138.50
C. $443.20
D. $581.70
E. $76.50
109. Mission Company has three employees:
|
Gross Pay through July
|
Gross Pay for August
|
|
Smith
|
$3,200
|
$1,000
|
|
Cain
|
25,800
|
3,500
|
|
Clark
|
94,600
|
13,100
|
|
|
The company is subject to the following taxes:
|
|
|
|
|
Tax
|
Rate
|
Applied to
|
FICA—Social Security
|
6.20 %
|
|
First $106,800
|
FICA—Medicare
|
1.45
|
|
All gross pay
|
FUTA
|
.80
|
|
First $7,000
|
SUTA
|
5.40
|
|
First $7,000
|
|
|
|
|
|
What are Mission Company’s total August payroll taxes for Cain?
A. $ 1,705.95
B. $1,973.70
C. $2,241.45
D. $267.75
E. $484.75
110. Mission Company has three employees:
|
Gross Pay through July
|
Gross Pay for August
|
|
Smith
|
$3,200
|
$1,000
|
|
Cain
|
25,800
|
3,500
|
|
Clark
|
94,600
|
13,100
|
|
|
The company is subject to the following taxes:
|
|
|
|
|
Tax
|
Rate
|
Applied to
|
FICA—Social Security
|
6.20 %
|
|
First $106,800
|
FICA—Medicare
|
1.45
|
|
All gross pay
|
FUTA
|
.80
|
|
First $7,000
|
SUTA
|
5.40
|
|
First $7,000
|
|
|
|
|
|
What are Mission Company’s total August payroll taxes for Clark?
A. $ 946.35
B. $1,002.15
C. $1,814.35
D. $6,234.75
E. $812.20