3.		At Haddon, Inc., the office workers are employed for a 40-hour workweek and are paid on either an annual, monthly, or hourly basis. All office workers are entitled to overtime pay for all hours worked beyond 40 each workweek at 1 times the regular hourly rates.
		On the form below, calculate for each worker: (a) regular earnings, (b) overtime earnings, (c) total regular and overtime earnings, (d) FICA taxable wages, (e) FICA taxes to be withheld, and (f) net pay for the week ended December 26, 20--. Assume that there are 52 weekly payrolls in 20--. Also, determine the total for each of these six items. (1 point for each correct answer)

Weekly Payroll for Period Ending December 26, 20--

					Total Reg.	Cum.	FICA
		Hrs.	Regular	Overtime	and O/T	Taxable Wages	Taxable Wages	FICA Taxes	Net
Employee	Salary	Worked	Earnings	Earnings	Earnings	as of Last Pay	This Pay Period	to Be Withheld	Pay
			(A)	(B)	(C)	Period (12/19/--)	(D)	(E)	(F)
							OASDI	HI	OASDI	HI
OFFICE:	$117,520
King, M.	per yr.	40	4700.80	0	4700.80	$115,260.00	4700.80	4700.80
	$6,500
Manera, E.	per mo.	40	1500	0	1500	$76,500.00	1500	1500
	$3,900
Tate, S.	per mo.	48	900	270	1170	$45,900.00	1170	1170	72.50	16.97	1080.53
	$12.50
Yee, L.	per hr.	44	500	84.38	584.38	$27,675.13	584.38	584.38	36.23	8.47	539.68
PLANT:	$12.50
Diaz, R.	per hr.	48	500	150	650	$14,778.96	650	650	40.30	9.43	556.27
	$14.50
Zagst, J.	per hr.	52	580	261	841	$24,703.02	841	841	52.14	12.19	776.67
Totals	?	?				?

Employer?s FICA Taxes: OASDI $ HI $

ATS-1 2015 PAYROLL ACCOUNTING e d i t i o n Bieg/Toland TEST 3 FODAY FANDAY Student Chapter 3 Date 3/6/16 SCORING RECORD Section Total Points A 60 Total Score 40 B Deductions 100 Section ADIRECTIONS: Each of the following statements is either true or false. Unless directed otherwise by your instructor, indicate your choice in the Answers column by writing \"T\" for a true answer or \"F\" for a false answer. (1 point for each correct answer) For Answers Scoring 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. A child working for his father's corporation is not exempt from coverage under FICA.................... Under FICA, each partner in a partnership is defined as an employee of that organization................ Part-time employees pay a FICA tax at half the tax rate of full-time employees................................ Once a person reaches the age of 65, social security taxes are not taken out of his or her paycheck.......................................................................................................................................... Year-end bonuses paid to employees are not subject to the hospital insurance (HI) part of the FICA tax........................................................................................................................................... Under FICA, employers must collect the employee's FICA taxes on tips reported by each employee. Employees and independent contractors pay different FICA tax rates............................................... Employer contributions for retirement plan payments for employees are defined as wages and are thus subject to FICA taxes........................................................................................................... If on any day during a deposit period an employer has accumulated $100,000 or more in undeposited employment taxes, the taxes must be deposited on the next banking day....................... If an employee defers compensation into a 401(k) plan, the deferral (payroll deduction) is still subject to social security taxes.......................................................................................................... Employers must withhold FICA taxes on payments that are made to independent contractors........... Self-employed persons who also work other jobs as employees do not have to pay any FICA taxes on their net self-employment earnings...................................................................................... The requirements for depositing FICA taxes and income taxes withheld from employees' wages vary according to the amount of such taxes reported during a \"lookback period.\"............................. A monthly depositor's employment taxes total $3,800 on Wednesday, March 31, 20--, the end of the calendar quarter. The taxes should be deposited on or before the following Tuesday (April 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. AT-6 Chapter 3/Achievement Test 6)...................................................................................................................................................... 15. On payday, Friday, a semiweekly depositor has accumulated employment taxes totaling $13,900. The taxes should be deposited on or before the following Wednesday............................................... 15. 16. Employers who file Form 941 electronically are given an extra 10 days from the normal due date to make their deposits......................................................................................................... 16. 17. Once the initial Form 941 is filed by a company, the company does not need to file Form 941 for a quarter in which there are no taxes to report................................................................................... 17. 18. Every employer has the right to choose the method (electronic or paper coupon) of depositing employment taxes............................................................................................................................. 18. 19. If the last day for filing Form 941 falls on Saturday, the return may be filed on the next business day. .................................................................................................................................................. 19. 20. If tax deposits are made on time, there is no penalty for late filing of Form 941................................ T 20. 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Section BDIRECTIONS: Complete Problems 1 and 2 by recording your answers in the spaces provided. Use the following tax rates and taxable wage bases: Employees' and Employer's OASDI6.2% both on $117,000; HI1.45% for employees and employers on the total wages paid. Employees' Supplemental HI of 0.9% on wages in excess of $200,000 was not applicable in these problems. 1. During 2015, Amanda Hines, president of Dunne, Inc., was paid a semimonthly salary of $6,800. Determine the following amounts. (2 points for each correct answer) OASDI HI (a) The amount of FICA taxes to withhold from her 9th pay is.......................................................................................................................... $ 3794.40 $ 887.40 (b) The amount of FICA taxes to withhold from her 18th pay is........................................................................................................................ $ 7588.8 $ 1774.8 (c) The amount of FICA taxes to withhold from her 24th pay is........................................................................................................................ $ 10118.4 $ 2366.4 2. Karlie Hastings is a writer (employee) for the Santa Fe Gazette and has an annual salary of $49,000. This year, she also realized net self-employment earnings of $75,000 from a book she wrote. What portion of her self-employment earnings is subject to the two parts of the social security tax? (5 points for each correct answer) (a) OASDI taxable self-employment earnings........................................... $ 68,000 (c) OASDI self-employment tax........................................................................ $ 4,216 (b) HI taxable self-employment earnings................................................... $ 124,000 (d) HI self-employment tax................................................................................ $ 1,798 3. At Haddon, Inc., the office workers are employed for a 40-hour workweek and are paid on either an annual, monthly, or hourly basis. All office workers are entitled to overtime pay for all hours worked beyond 40 each workweek at 1 times the regular hourly rates. On the form below, calculate for each worker: (a) regular earnings, (b) overtime earnings, (c) total regular and overtime earnings, (d) FICA taxable wages, (e) FICA taxes to be withheld, and (f) net pay for the week ended December 26, 20--. Assume that there are 52 weekly payrolls in 20--. Also, determine the total for each of these six items. (1 point for each correct answer) Weekly Payroll for Period Ending December 26, 20-- Employee Salary OFFICE: King, M. Zagst, J. $117,520 per yr. $6,500 per mo. $3,900 per mo. $12.50 per hr. $12.50 per hr. $14.50 per hr. Totals ... Manera, E. Tate, S. Yee, L. PLANT: Diaz, R. Employer's FICA Taxes: Hrs. Worked Regular Earnings (A) Overtime Earnings (B) Total Reg. and O/T Earnings (C) 40 Cum. Taxable Wages as of Last Pay Period (12/19/--) FICA Taxable Wages This Pay Period (D) OASDI HI FICA Taxes to Be Withheld (E) OASDI HI Net Pay (F) $115,260.00 40 1500 48 900 270 1170 $45,900.00 1170 1170 72.50 16.97 1080.53 44 500 84.38 584.38 $27,675.13 584.38 584.38 36.23 8.47 539.68 48 500 150 650 $14,778.96 650 650 40.30 9.43 556.27 52 580 261 841 $24,703.02 841 841 52.14 12.19 776.67 ... $76,500.00 ... OASDI $ HI $