Question 1

The payroll register is a key source of information for computing employer payroll taxes.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following tax programs often has a merit-rating system to encourage employers to provide regular employment for workers?

Accepted Answer

A)   FICA
B)   FUTA
C)   SUTA
D)   workers' compensation insurance

Question 3

In general, the larger the amount of Social Security and Medicare taxes due from an employer, the more frequently payments must be made.

Accepted Answer

A) True 
 B)False

Question 4

Social Security, Medicare, FUTA, and SUTA taxes have separate liability accounts.

Accepted Answer

A) True 
 B)False

Question 5

The adjustment to journalize an additional premium due at the end of the year for workers' compensation insurance (WCI)  is

Accepted Answer

A)   debit WCI Expense and credit Cash.
B)   debit WCI Expense and credit Insurance Refund.
C)   debit WCI Expense and credit WCI Payable.
D)   debit Insurance Payable and credit WCI Payable.

Question 6

Employers who have less than $2,500 due in federal income tax withholding and Social Security and Medicare taxes at the end of the quarter should journalize the debt and pay at the end of the

Accepted Answer

A)   year.
B)   quarter.
C)   month following the end of the quarter.
D)   next banking day.

Question 7

An Employer Identification Number (EIN)  is obtained by the employer from the

Accepted Answer

A)   nearest Federal Reserve Bank.
B)   CIA.
C)   Internal Revenue Service.
D)   nearest local federally insured bank.

Question 8

The date by which federal income tax withholding, Social Security, and Medicare taxes must be paid depends on the amount of these taxes.

Accepted Answer

A) True 
 B)False

Question 9

The employer usually pays the entire cost of

Accepted Answer

A)   FICA.
B)   Workers' Compensation Insurance.
C)   Medical Insurance.
D)   Disability Insurance.

Question 10

Match the terms with the definitions.
-A tax levied on employers to raise funds to pay unemployment benefits.

Accepted Answer

A)  Electronic Federal Tax Payment System (EFTPS) 
B)  employer FICA taxes
C)  Employer Identification Number (EIN) 
D)  Form W-2
E)  Form W-3F) Form 940G) Form 941H) FUTA (Federal Unemployment Tax Act)  taxI) merit-rating systemJ) self-employment incomeK) self-employment taxL) SUTA (state unemployment tax)  taxM) workers' compensation insurance

Question 11

Employer payroll taxes clearly are an insignificant cost of doing business.

Accepted Answer

A) True 
 B)False

Question 12

Employers are allowed a credit against the FUTA tax for participation in state unemployment programs.

Accepted Answer

A) True 
 B)False

Question 13

Form 940 is called the Employer's Quarterly Federal Tax Return.

Accepted Answer

A) True 
 B)False

Question 14

Employers who have $100,000 or more due in federal income tax withholding and Social Security and Medicare taxes on any day during the current quarter should journalize the debt and pay at the end of the

Accepted Answer

A)   year.
B)   quarter.
C)   month following the end of the quarter.
D)   next banking day.

Question 15

Match the terms with the definitions.
-A number that identifies the employer on all payroll forms and reports filed with the IRS.

Accepted Answer

A)  Electronic Federal Tax Payment System (EFTPS) 
B)  employer FICA taxes
C)  Employer Identification Number (EIN) 
D)  Form W-2
E)  Form W-3F) Form 940G) Form 941H) FUTA (Federal Unemployment Tax Act)  taxI) merit-rating systemJ) self-employment incomeK) self-employment taxL) SUTA (state unemployment tax)  taxM) workers' compensation insurance

Question 16

Which of the following is a payroll tax normally paid by both the employee and the employer?

Accepted Answer

A)   Medicare tax
B)   FUTA tax
C)   property tax
D)   SUTA tax

Question 17

The date on which an employer must pay Social Security and Medicare taxes is

Accepted Answer

A)   January 1 of each year.
B)   December 31 of each year.
C)   June 30 of each year.
D)   dependent on the amount of the taxes.

Question 18

Match the terms with the definitions.
-Employer's Annual Federal Unemployment Tax Return

Accepted Answer

A)  Electronic Federal Tax Payment System (EFTPS) 
B)  employer FICA taxes
C)  Employer Identification Number (EIN) 
D)  Form W-2
E)  Form W-3F) Form 940G) Form 941H) FUTA (Federal Unemployment Tax Act)  taxI) merit-rating systemJ) self-employment incomeK) self-employment taxL) SUTA (state unemployment tax)  taxM) workers' compensation insurance

Question 19

The federal unemployment tax is levied on

Accepted Answer

A)   employers and is not deducted from employees' earnings.
B)   employees and is deducted from customer payments.
C)   employers and is deducted from employees' earnings.
D)   employees and employers.

Question 20

The cost of workers' compensation insurance to a construction company with 15 employees would likely be higher than the cost of insurance to a small candy company with 15 employees.

Accepted Answer

A) True 
 B)False

Exam 9: Payroll Accounting: Employer Taxes and Reports

The cost of workers' compensation insurance to a construction company with 15 employees would likely be higher than the cost of insurance to a small candy company with 15 employees.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -A tax levied on employers to raise funds to pay unemployment benefits.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -A number that identifies the employer on all payroll forms and reports filed with the IRS.

Correct AnswerverifiedShow Answer

The payroll register is a key source of information for computing employer payroll taxes.

Correct AnswerverifiedShow Answer

Social Security, Medicare, FUTA, and SUTA taxes have separate liability accounts.

Correct AnswerverifiedShow Answer

The date by which federal income tax withholding, Social Security, and Medicare taxes must be paid depends on the amount of these taxes.

Correct AnswerverifiedShow Answer

Form 940 is called the Employer's Quarterly Federal Tax Return.

Correct AnswerverifiedShow Answer

The adjustment to journalize an additional premium due at the end of the year for workers' compensation insurance (WCI) is

Correct AnswerverifiedShow Answer

The federal unemployment tax is levied on

Correct AnswerverifiedShow Answer

Employers who have $100,000 or more due in federal income tax withholding and Social Security and Medicare taxes on any day during the current quarter should journalize the debt and pay at the end of the

Correct AnswerverifiedShow Answer

Employers are allowed a credit against the FUTA tax for participation in state unemployment programs.

Correct AnswerverifiedShow Answer

Which of the following tax programs often has a merit-rating system to encourage employers to provide regular employment for workers?

Correct AnswerverifiedShow Answer

Which of the following is a payroll tax normally paid by both the employee and the employer?

Correct AnswerverifiedShow Answer

Employer payroll taxes clearly are an insignificant cost of doing business.

Correct AnswerverifiedShow Answer

The employer usually pays the entire cost of

Correct AnswerverifiedShow Answer

An Employer Identification Number (EIN) is obtained by the employer from the

Correct AnswerverifiedShow Answer

The date on which an employer must pay Social Security and Medicare taxes is

Correct AnswerverifiedShow Answer

In general, the larger the amount of Social Security and Medicare taxes due from an employer, the more frequently payments must be made.

Correct AnswerverifiedShow Answer

Employers who have less than $2,500 due in federal income tax withholding and Social Security and Medicare taxes at the end of the quarter should journalize the debt and pay at the end of the

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -Employer's Annual Federal Unemployment Tax Return

Correct AnswerverifiedShow Answer

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