Question 1

Match the terms with the definitions.
-The net income of a trade or business run by an individual.

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 2

Match the terms with the definitions.
-A tax levied on employers to raise funds to administer the federal/state unemployment compensation program.

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 3

To journalize the payment of Medicare taxes to the IRS, the correct entry would be

Accepted Answer

A)   debit Medicare Tax Payable and credit IRS.
B)   debit Medicare Tax Payable and credit Social Security Payable.
C)   debit Medicare Tax Payable and credit Cash.
D)   debit Medicare Tax Payable and credit Payroll Taxes Expense.

Question 4

Match the terms with the definitions.
-Employee's Wage and Tax Statement

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 5

The self-employment tax rate is double the rate of

Accepted Answer

A)   Social Security and Medicare taxes.
B)   FUTA taxes.
C)   SUTA taxes.
D)   property taxes.

Question 6

The cost of workers' compensation insurance for the employer depends on all of the following EXCEPT

Accepted Answer

A)   the number of employees.
B)   the riskiness of the jobs the employees perform.
C)   the company's accident history.
D)   the amount of FICA, FUTA, and SUTA taxes due.

Question 7

In most states, if an employer has very few former employees who collect unemployment compensation, the employer qualifies for a lower state unemployment tax rate.

Accepted Answer

A) True 
 B)False

Question 8

In most states, the state unemployment tax is levied only on employers.

Accepted Answer

A) True 
 B)False

Question 9

SUTA tax payments vary among states but are usually required on a quarterly basis.

Accepted Answer

A) True 
 B)False

Question 10

Employers' payroll taxes include FICA, FUTA, and SUTA taxes.

Accepted Answer

A) True 
 B)False

Question 11

The EFTPS is an electronic funds transfer system for making federal tax deposits.

Accepted Answer

A) True 
 B)False

Question 12

Journalizing payroll taxes for the employer will require several debit entries but only one credit entry.

Accepted Answer

A) True 
 B)False

Question 13

Match the terms with the definitions.
-An electronic funds transfer system for making federal tax deposits.

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 14

Each employer must have an Employer Identification Number (EIN) to show on all tax reports.

Accepted Answer

A) True 
 B)False

Question 15

Match the terms with the definitions.
-Transmittal of Wage and Tax Statements

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

Self-employed individuals can be viewed as both employer and employee.

Accepted Answer

A) True 
 B)False

Question 17

Workers' compensation provides insurance for employees who suffer a job-related illness or injury.

Accepted Answer

A) True 
 B)False

Question 18

The Social Security, Medicare, FUTA, and SUTA tax accounts normally have credit balances.

Accepted Answer

A) True 
 B)False

Question 19

Most employers have to pay FICA and FUTA taxes.

Accepted Answer

A) True 
 B)False

Exam 9: Payroll Accounting: Employer Taxes and Reports

Most employers have to pay FICA and FUTA taxes.

Correct Answer
verified

The self-employment tax rate is double the rate of

Correct Answer
verified

Workers' compensation provides insurance for employees who suffer a job-related illness or injury.

Correct Answer
verified

Match the terms with the definitions. -An electronic funds transfer system for making federal tax deposits.

Correct Answer
verified

SUTA tax payments vary among states but are usually required on a quarterly basis.

Correct Answer
verified

Journalizing payroll taxes for the employer will require several debit entries but only one credit entry.

Correct Answer
verified

Match the terms with the definitions. -The net income of a trade or business run by an individual.

Correct Answer
verified

Match the terms with the definitions. -Transmittal of Wage and Tax Statements

Correct Answer
verified

To journalize the payment of Medicare taxes to the IRS, the correct entry would be

Correct Answer
verified

Self-employed individuals can be viewed as both employer and employee.

Correct Answer
verified

In most states, if an employer has very few former employees who collect unemployment compensation, the employer qualifies for a lower state unemployment tax rate.

Correct Answer
verified

Match the terms with the definitions. -Employee's Wage and Tax Statement

Correct Answer
verified

In most states, the state unemployment tax is levied only on employers.

Correct Answer
verified

The EFTPS is an electronic funds transfer system for making federal tax deposits.

Correct Answer
verified

The cost of workers' compensation insurance for the employer depends on all of the following EXCEPT

Correct Answer
verified

The Social Security, Medicare, FUTA, and SUTA tax accounts normally have credit balances.

Correct Answer
verified

Employers' payroll taxes include FICA, FUTA, and SUTA taxes.

Correct Answer
verified

Match the terms with the definitions. -A tax levied on employers to raise funds to administer the federal/state unemployment compensation program.

Correct Answer
verified

Each employer must have an Employer Identification Number (EIN) to show on all tax reports.

Correct Answer
verified

Exam 9: Payroll Accounting: Employer Taxes and Reports

Most employers have to pay FICA and FUTA taxes.

Correct AnswerverifiedShow Answer

The self-employment tax rate is double the rate of

Correct AnswerverifiedShow Answer

Workers' compensation provides insurance for employees who suffer a job-related illness or injury.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -An electronic funds transfer system for making federal tax deposits.

Correct AnswerverifiedShow Answer

SUTA tax payments vary among states but are usually required on a quarterly basis.

Correct AnswerverifiedShow Answer

Journalizing payroll taxes for the employer will require several debit entries but only one credit entry.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -The net income of a trade or business run by an individual.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -Transmittal of Wage and Tax Statements

Correct AnswerverifiedShow Answer

To journalize the payment of Medicare taxes to the IRS, the correct entry would be

Correct AnswerverifiedShow Answer

Self-employed individuals can be viewed as both employer and employee.

Correct AnswerverifiedShow Answer

In most states, if an employer has very few former employees who collect unemployment compensation, the employer qualifies for a lower state unemployment tax rate.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -Employee's Wage and Tax Statement

Correct AnswerverifiedShow Answer

In most states, the state unemployment tax is levied only on employers.

Correct AnswerverifiedShow Answer

The EFTPS is an electronic funds transfer system for making federal tax deposits.

Correct AnswerverifiedShow Answer

The cost of workers' compensation insurance for the employer depends on all of the following EXCEPT

Correct AnswerverifiedShow Answer

The Social Security, Medicare, FUTA, and SUTA tax accounts normally have credit balances.

Correct AnswerverifiedShow Answer

Employers' payroll taxes include FICA, FUTA, and SUTA taxes.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -A tax levied on employers to raise funds to administer the federal/state unemployment compensation program.

Correct AnswerverifiedShow Answer

Each employer must have an Employer Identification Number (EIN) to show on all tax reports.

Correct AnswerverifiedShow Answer

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