Question 1

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 2

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

Accepted Answer

A) True 
 B)False

Question 3

By December 31 each year, employers must furnish each employee with a Wage and Tax Statement.

Accepted Answer

A) True 
 B)False

Question 4

The rules by which employers must deposit Social Security and Medicare taxes can be found in the

Accepted Answer

A)   Circular E--Employer's Tax Guide.
B)   Circle K Tax Guide.
C)   Federal Reserve Bank Tax Guide.
D)   state tax guide.

Question 5

Form 941 is called the Employer's Quarterly Federal Tax Return.

Accepted Answer

A) True 
 B)False

Question 6

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 7

A self-employment tax is a contribution to the

Accepted Answer

A)   charities of the individual owner's choice.
B)   SUTA programs.
C)   FUTA programs.
D)   Social Security and Medicare programs.

Question 8

The Social Security, Medicare, and FUTA tax accounts are debited when the taxes are actually paid to the IRS.

Accepted Answer

A) True 
 B)False

Question 9

If an employer qualifies for a lower state unemployment tax rate, this lowers the credit allowed in computing the federal unemployment tax due.

Accepted Answer

A) True 
 B)False

Question 10

Persons earning self-employment income of $400 or more must pay a self-employment tax.

Accepted Answer

A) True 
 B)False

Question 11

Form 941 is a(n)

Accepted Answer

A)   Employee Withholding Allowance Certificate.
B)   Employer's Quarterly Federal Tax Return.
C)   Wage and Tax Statement.
D)   Employer's Annual Federal Unemployment Tax Return.

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

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 14

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 15

A self-employment tax is required of an individual who owns his or her own business and makes

Accepted Answer

A)   $1 or more.
B)   $200 or more.
C)   $400 or more.
D)   $1,000 or more.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

A key source of information for computing employer payroll taxes is the

Accepted Answer

A)   statement of owner's equity.
B)   end-of-period balance sheet.
C)   payroll register.
D)   employees' check stubs.

Question 18

The FUTA tax applies to all employee earnings throughout the year.

Accepted Answer

A) True 
 B)False

Question 19

Most employers have to pay FICA and FUTA taxes.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 9: Payroll Accounting: Employer Taxes and Reports

The Social Security, Medicare, and FUTA tax accounts are debited when the taxes are actually paid to the IRS.

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

If an employer qualifies for a lower state unemployment tax rate, this lowers the credit allowed in computing the federal unemployment tax due.

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

A key source of information for computing employer payroll taxes is the

Correct AnswerverifiedShow Answer

A self-employment tax is required of an individual who owns his or her own business and makes

Correct AnswerverifiedShow Answer

By December 31 each year, employers must furnish each employee with a Wage and Tax Statement.

Correct AnswerverifiedShow Answer

The self-employment tax rate is double the rate of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Form 941 is a(n)

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Form 941 is called the Employer's Quarterly Federal Tax Return.

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

Persons earning self-employment income of $400 or more must pay a self-employment tax.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A self-employment tax is a contribution to the

Correct AnswerverifiedShow Answer

The FUTA tax applies to all employee earnings throughout the year.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Most employers have to pay FICA and FUTA taxes.

Correct AnswerverifiedShow Answer

The rules by which employers must deposit Social Security and Medicare taxes can be found in the

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified