37) Tom's gross pay for the week is $800. Tom's deduction for federal income tax is based on a rate of 18%. Tom has no voluntary deductions. Tom's yearly pay is under the limit for OASDI. How much is the amount of FICA tax that Tom's employer must record as payroll tax expense and pay to Social Security?
A) $68.00
B) $61.20
C) $122,40
D) $144.00
38) Tom's gross pay for the week is $800. Tom's yearly pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6.2% and that Tom's pay year-to-date has not yet exceeded the $7,000 cap. How much is the amount of state and federal unemployment tax that Tom's employer must record as payroll tax expense and pay to the federal and state governments?
A) $61.20
B) $38.80
C) $99.20
D) $49.60
39) Tom's gross pay for the week is $800. Tom's yearly pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6.2% and that Tom's pay year-to-date has previously exceeded the $7,000 cap. How much is the amount of state and federal unemployment tax that Tom's employer must record as payroll tax expense and pay to the federal and state governments?
A) $0
B) $38.80
C) $99.20
D) $49.60
40) Tom's gross pay for the week is $800. Tom's yearly pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6.2% and that Tom's pay year-to-date has not yet exceeded the $7,000 cap. How much is the total amount of payroll taxes that Tom's employer must record as payroll tax expenses?
A) $61.20
B) $38.80
C) $110.80
D) $49.60
41) Tom's gross pay for the week is $800. Tom's yearly pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6.2% and that Tom's pay year-to-date has previously exceeded the $7,000 cap. How much is the total amount of payroll taxes that Tom's employer must record as payroll tax expenses?
A) $61.20
B) $38.80
C) $110.80
D) $49.60
Learning Objective 10-4
1) The Statewide Sales Company has gross pay for March of $45,000. The first journal entry in the payroll cycle to record salary expense would include a credit to Cash for $45,000.
2) Art Parrish, the sole employee of Parrish Sales, has gross salary for March of $4,000. The entire amount is under the OASDI limit of $106,800 and thus subject to FICA. He is also subject to federal income tax at a rate of 18%.
Art has a deduction of $320 for health insurance and $80 for United Way. The second entry in the payroll cycle to record the disbursement of his net pay should include a credit to cash for $2,574.
3) Art Parrish is the sole employee of Parrish Sales. His company pays a portion of his health insurance premium, and also contributes to a retirement plan in his name. The company share of the health insurance premium is $400 and the company contribution to the retirement plan is $550. The third journal entry in the payroll cycle to record the employee benefits to be paid by the company should include a credit to cash for $950.
4) Art Parrish is the sole employee of Parrish Sales. His company pays a portion of his health insurance premium, and also contributes to a retirement plan in his name. The company share of the health insurance premium is $400 and the company contribution to the retirement plan is $550. The third journal entry in the payroll cycle to record the employee benefits paid by the company should include a credit to Employee benefits payable for $950.
5) Art Parrish, the sole employee of Parrish Sales, has gross salary for March of $4,000. The entire amount is under the OASDI limit of $106,800 and thus subject to FICA. He is also subject to federal income tax at a rate of 18%. His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. The fifth journal entry in the payroll cycle to record the payment by the company of payroll taxes to the government includes a debit to FICA payable of $306.