Question 1

The purpose of Form 941 is to report the tax liability for withholdings of employees':

Accepted Answer

A)   FICA and federal income taxes.
B)   FICA and property taxes.
C)   State Unemployment tax (SUT
A)   and gift taxes.
D)   Federal Unemployment tax (FUT
A)   and estate taxes.
E)   State Unemployment tax (SUT
A)   and infrastructure taxes.

Question 2

Which of the following amounts does Form 941 ask for?

Accepted Answer

A)   Total number of employees during the quarter
B)   Total wages and tips subject to federal tax withholding
C)   Total federal income tax withheld
D)   All of these
E)   None of these

Question 3

The Sales Wage Expense would be used to record:

Accepted Answer

A)   Net pay for sales personnel
B)   A holding account for wages due and payable
C)   Gross Pay for Sales Personnel
D)   Deductions for Sales Personnel

Question 4

The entry to record the employer's payroll taxes includes a

Accepted Answer

A)   credit to Employees' Federal Income Tax Payable.
B)   debit to FICA Tax Expense.
C)   debit to Salaries Payable.
D)   credit to FICA Tax Payable.
E)   debit to Federal Unemployment Tax Payable.

Question 5

There is a ceiling on each employee's annual earnings that are subject to federal income taxes.

Accepted Answer

A) True 
 B)False

Question 6

The W-2 form contains all of the following EXCEPT:

Accepted Answer

A)   Wages
B)   Employee Social Security Number
C)   EIN
D)   Number of Allowances

Question 7

Compare and contrast payroll Forms 940 and 941.

Accepted Answer

Compare: Payroll taxes for employer. Bot...

Question 8

This form is also called the Transmittal of Wage and Tax Statement.

Accepted Answer

A)   W-2
B)   941
C)   940
D)   W-3

Question 9

Lee Loren has cumulative earnings of $6,750 and earned $745 during the current pay period. If the FUTA tax rate is 0.6 percent, with a ceiling of $7,000, the employer payroll tax expense for FUTA is

Accepted Answer

A)   $54.00.
B)   $5.96.
C)   $0.
D)   $1.50.
E)   $15.00.

Question 10

Which of the following statements is true?

Accepted Answer

A)   SUTA and FUTA Tax Rates are always the same
B)   Payroll Tax Expense involves Federal Income Tax Withholding.
C)   The FUTA wage taxable limit is $7,000
D)   Withholding Federal Income Taxes is optional for the employer

Question 11

A debit to the Payroll Tax Expense account means:

Accepted Answer

A)   The employer's payroll taxes have increased
B)   The employer's payroll taxes have decreased
C)   Both the employer's and the employee's payroll taxes have increased
D)   The employer's and employee's payroll taxes have not changed

Question 12

Employers are required to pay FICA taxes higher in amount to the FICA taxes withheld than their employees.

Accepted Answer

A) True 
 B)False

Question 13

Explain the difference between Form W-2 and W-4 including why each form is needed by employers to complete payroll activities.

Accepted Answer

The W-2 form is a summary of each employ...

Question 14

Mark Construction Company received and paid a premium notice on January 5 for workers' compensation insurance stating the rates for the new year. Estimated employees' earnings for the year are as follows:
?
  At the end of the year, the exact figures for the payroll are as follows:
Instructions:
  
1.Record the entry in general journal form for the payment of estimated premium on
January 5.
2.Record the adjusting entries on December 31 for the insurance expired and for the additional premium.

Accepted Answer

The answer of Mark Construction Company received and paid a...

Question 15

Which of the following statements is false?

Accepted Answer

A)   Employers are required to pay FICA taxes matching the amount withheld from their employees.
B)   Employers are responsible for paying FUTA Taxes.
C)   Employers are responsible for withholding and remitting Federal Income Taxes.
D)   Employers must file form 941 quarterly.

Question 16

Rounding differences with the employee and employer amounts of FICA taxes are handled on the 941 report by:

Accepted Answer

A)   Any differences are paid in or refunded as appropriate
B)   Line 7 accommodates fraction differences, which accommodates rounding
C)   When differences occur, the numbers are adjusted before the report to balance
D)   None of the above

Question 17

The FUTA tax must be paid by the employer annually on December 31.

Accepted Answer

A) True 
 B)False

Question 18

Companies furnish their employees with W-2 forms quarterly.

Accepted Answer

A) True 
 B)False

Question 19

Form 941 is submitted annually.

Accepted Answer

A) True 
 B)False

Question 20

Extra hours that are added to wage information in order to increase pay is an example of:

Accepted Answer

A)   Ghost Employee Fraud
B)   False Wage Claim Fraud
C)   False Expense Reimbursement Fraud
D)   None of the above

Exam 8: Employer Taxes, Payments, and Reports

This form is also called the Transmittal of Wage and Tax Statement.

Correct Answer
verified

Explain the difference between Form W-2 and W-4 including why each form is needed by employers to complete payroll activities.

Correct Answer
verified
The W-2 form is a summary of each employ...
View Answer

The Sales Wage Expense would be used to record:

Correct Answer
verified

Employers are required to pay FICA taxes higher in amount to the FICA taxes withheld than their employees.

Correct Answer
verified

Extra hours that are added to wage information in order to increase pay is an example of:

Correct Answer
verified

Lee Loren has cumulative earnings of $6,750 and earned $745 during the current pay period. If the FUTA tax rate is 0.6 percent, with a ceiling of $7,000, the employer payroll tax expense for FUTA is

Correct Answer
verified

There is a ceiling on each employee's annual earnings that are subject to federal income taxes.

Correct Answer
verified

The entry to record the employer's payroll taxes includes a

Correct Answer
verified

Form 941 is submitted annually.

Correct Answer
verified

Compare and contrast payroll Forms 940 and 941.

Correct Answer
verified
Compare: Payroll taxes for employer. Bot...
View Answer

The W-2 form contains all of the following EXCEPT:

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

Companies furnish their employees with W-2 forms quarterly.

Correct Answer
verified

Which of the following amounts does Form 941 ask for?

Correct Answer
verified

A debit to the Payroll Tax Expense account means:

Correct Answer
verified

Correct Answer
verified

The FUTA tax must be paid by the employer annually on December 31.

Correct Answer
verified

The purpose of Form 941 is to report the tax liability for withholdings of employees':

Correct Answer
verified

Which of the following statements is false?

Correct Answer
verified

Rounding differences with the employee and employer amounts of FICA taxes are handled on the 941 report by:

Correct Answer
verified

Exam 8: Employer Taxes, Payments, and Reports

This form is also called the Transmittal of Wage and Tax Statement.

Correct AnswerverifiedShow Answer

Explain the difference between Form W-2 and W-4 including why each form is needed by employers to complete payroll activities.

Correct AnswerverifiedThe W-2 form is a summary of each employ...View AnswerShow Answer

The Sales Wage Expense would be used to record:

Correct AnswerverifiedShow Answer

Employers are required to pay FICA taxes higher in amount to the FICA taxes withheld than their employees.

Correct AnswerverifiedShow Answer

Extra hours that are added to wage information in order to increase pay is an example of:

Correct AnswerverifiedShow Answer

Lee Loren has cumulative earnings of $6,750 and earned $745 during the current pay period. If the FUTA tax rate is 0.6 percent, with a ceiling of $7,000, the employer payroll tax expense for FUTA is

Correct AnswerverifiedShow Answer

There is a ceiling on each employee's annual earnings that are subject to federal income taxes.

Correct AnswerverifiedShow Answer

The entry to record the employer's payroll taxes includes a

Correct AnswerverifiedShow Answer

Form 941 is submitted annually.

Correct AnswerverifiedShow Answer

Compare and contrast payroll Forms 940 and 941.

Correct AnswerverifiedCompare: Payroll taxes for employer. Bot...View AnswerShow Answer

The W-2 form contains all of the following EXCEPT:

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Companies furnish their employees with W-2 forms quarterly.

Correct AnswerverifiedShow Answer

Which of the following amounts does Form 941 ask for?

Correct AnswerverifiedShow Answer

A debit to the Payroll Tax Expense account means:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The FUTA tax must be paid by the employer annually on December 31.

Correct AnswerverifiedShow Answer

The purpose of Form 941 is to report the tax liability for withholdings of employees':

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

Rounding differences with the employee and employer amounts of FICA taxes are handled on the 941 report by:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified
The W-2 form is a summary of each employ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Compare: Payroll taxes for employer. Bot...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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