1)Contract laborers get deductions for Social Security and Medicare taxes whenever they get paid. True/False

2)Employees and employers are contributing to the same amount of social security and Medicare taxes starting 2011.True/False

3)The state taxing authority mandates the federal unemployment tax rates. True/False

4)The federal withholding taxes are mandatory contributions of the employers. True/False

5) The social security and Medicare taxes deducted from employees become the liabilities of the employers. True/False

6)The 401-K pension plans of the employees are mandatory contributions of the employers. True/False

7)The 401-K pension plans of the employees are mandatory contributions of the employers. True/False

8)The Medicare tax rate is 1.45% of the gross pay with no limit. True/False

9)Form 941 is used for federal unemployment taxes to be paid by the employers. True/Fale

10)Form W-2 is the Employees Annual Tax Statement which must be sent to employees no later than Jan. 31 of the following year the earnings were paid. True/False

11)Table 1: On Dec. 15, current year, ABC Co. paid 2 employees: Toni is paid $20.00 an hour and worked for 48 hours for the week. Joseph is paid a salary amount of $1,000.00 a week. Toni's federal income tax withholding is $50.00 and Joseph's federal income tax withholding is $100.00. Toni contributes 5% of his pay to 401-K pension plan, while Joseph does not. Joseph contributes $10.00 to United Way and Tony does not. The company's federal unemployment tax rate is 0.6% of the first $7,000.00. The state unemployment tax rate is 3% of the first $24,000.00. The Workman's compensation insurance rate is 3.5% of the first $36,000.00. The company matches the 401-K contributions that employees make to their pension plans. This is the first pay period for the current year.

Refer to Table 1, the total amount of federal unemployment tax is:

$8.32

$16.32

$8.00

$15.68

None of the above

12)Refer to Table 1, the total amount of state unemployment tax is:

$58.80

$30.00

$61.20

$31.20

None of the above

13)Refer to Table 1, the total amount of workmen's compensation insurance premium is:

$71.40

$68.60

$35.00

$36.40

N0one of the above.

14)Refer to Table 1, the total amount of employer's mandatory contribution is:

$148.92

$77.52

$306.06

$304.98

None of the above.

15) Refer to Table 1, the total amount of employer's voluntary contribution is:

$148.92

$ 77.52

$306.06

$304.98

None of the above

16) Refer to Table 1, the total amount of employer's social security taxes is:

$85.68

$123.26

$64.48

$212.16

None of the above.

17) Refer to Table 1, the total amount of employer's Medicare taxes is:

$15.08

$29.58

$14.50

$61.20

None of the above.

18) Refer to Table 1, total amount of taxes which will appear in Form 941 is:

$265.26

$421.32

$462.12

$312.12

None of the above.

19) Refer to Table 1, the total amount of taxes that will appear in Form 940 is:

$61.20

$12.24

$16.32

$11.02

None of the above.

20)Refer to Table 1, The total cost of hiring these employees to the employer is:

$2,040.00

$2,496.96

$2,444.90

$2,340.90

$2,392.90