7) Workers’ Compensation Insurance is:

A) paid by the employer to protect the employee against job-related injury or death.

B) paid by the employee to protect himself/herself against job-related accidents or death.

C) paid by the employer to protect the employee against non job-related injury or death.

D) paid by the employee to protect himself/herself against non job-related accidents and death.

 

8) The journal entry to record the estimated advance premium payment for workers’ compensation is:

A)

Cash

Prepaid Insurance, Workers’ Compensation

 

B)

Prepaid Insurance, Workers’ Compensation

Cash

 

C)

Workers’ Compensation Insurance Expense

Cash

 

D)

Workers’ Compensation Insurance Payable

Cash

 

9) The look-back period is used to determine whether:

A) a business should make its Form 941 tax deposits on a monthly or semiweekly basis.

B) an employer will use Form 940.

C) an employer has sent the W-2s to their employees on timely basis.

D) an employer must pay unemployment taxes.

 

10) Grammy’s Bakery had the following information for the pay period ending June 30:

 

Employee Name

Pay

rate

Hours worked

Cumulative earnings

Department

Federal income tax withheld

P. Ganster

$ 2,000

Salaried

$ 12,000

Kitchen

$ 86.00

T. Baker

10.00/hr

50

6,500

Office

22.00

 

Assume:

FICA-OASDI applied to the first $106,800 at a rate of 6.2%.

FICA-Medicare applied at a rate of 1.45%.

FUTA applied to the first $7,000 at a rate of 0.8%.

SUTA applied to the first $7,000 at a rate of 5.6%.

State income tax is 3.8%.

 

Given the above information, what would be the amount applied to FUTA Payable?

A) Debit $4.00

B) Credit $4.00

C) Debit $20.40

D) Credit $20.40

 

11) The following amounts are an expense to the company except:

A) FICA-OASDI Payable.

B) FUTA Payable.

C) SUTA Payable.

D) All of the above are correct.

12) A company must pay Form 941 taxes electronically if:

A) they do business in multiple states.

B) they pay more than $200,000 in a given year.

C) they pay less than $200,000 in a given year.

D) The company would never have to pay electronically.

 

13) A banking day is any day that the bank is open to the public for business.

 

14) The employer pays the same amount as the employee for Federal Unemployment taxes.

 

15) Both employer and employee contribute to FICA-OASDI and SUTA tax.

 

16) Premiums for worker’s compensation insurance may be adjusted based on actual payroll amounts at the end of the year.

 

 

 



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