5. The federal unemployment tax is levied on

a. employees and employers.

b. employers and is deducted from employees' earnings.

c. employees and is deducted from customer payments.

d. employers and is not deducted from employees' earnings.

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

a. $400 or more.

b. $1 or more.

c. $1,000 or more.

d. $200 or more.

7. Which of the following tax programs often has a merit-rating system to encourage employers to provide regular employment for workers?

a. FUTA

b. SUTA

c. workers' compensation insurance

d. FICA

8. A self-employment tax is a contribution to the

a. Social Security and Medicare programs.

b. FUTA programs.

c. charities of the individual owner's choice.

d. SUTA programs.

9. To journalize the employer's payroll taxes, we need to credit all of the following accounts EXCEPT

a. Social Security Tax Payable.

b. Medicare Tax Payable.

c. Payroll Taxes Expense.

d. FUTA Tax Payable.

10. Melissa Taylor has gross earnings of $425 and withholdings of $26.35 for Social Security tax, $6.16 for Medicare tax, and $35 for federal income tax. Her employer pays $26.35 for Social Security tax, $6.16 for Medicare tax, $3 for FUTA tax, and $9 for SUTA tax. The total cost of Melissa to her employer is

a. $469.51.

b. $32.51.

c. $425.00.

d. $437.00.

11. When all taxes have been paid, the Social Security Tax Payable account will have

a. a zero balance.

b. equal debit and credit balances.

c. a debit balance.

d. a credit balance.

12. Employers who have $100,000 or more due in federal income tax withholding and Social Security and Medicare taxes on any day during the current quarter should journalize the debt and pay at the end of the

a. next banking day.

b. month following the end of the quarter.

c. year.

d. quarter.