1.Identify all correct statements concerning payrolls and

related payroll costs.

a. Both employers and employees pay Social Security and Medicare taxes.

b. Workers compensation premiums are withheld from employees wages.

c. An employers total payroll costs usually exceed total wages expense by about 7 percent.

d. Under current law, employers are required to pay Social Security taxes on employees earnings, but they are not required to pay for health insurance.

2. Identify the types of information that can readily be determined from an amortization table for an installment loan. (More than one answer may be correct.)

a. Interest expense on this liability for the current year.

b. The present value of the future payments under changing market conditions.

c. The unpaid balance remaining after each payment.

d. The portion of the unpaid balance that is a current liability.