An employee earns $33,600 per year and is paid once a month. For the month of July, her federal income taxes withheld are $210, state income taxes withheld are $40, social security tax is 6.2%, Medicare tax is 1.45%, State Unemployment Tax is 5.4%, and Federal Unemployment tax is 0.8%. What is the employee's net pay for July?

Multiple Choice

• $2,335.80

• $2,585.80

• $2,800.00

• $2,550.00

Which of the following statements is correct?

Multiple Choice

• The FUTA tax provides benefits for employees who become unemployed.

• The federal unemployment tax rate can be reduced by the rate charged by state for the state unemployment tax.

• The earnings base for the federal and state unemployment taxes are the same, the first $7,000 of an employee's earnings for the year.

• All of the above are correct.

When recording employee payroll, deductions made from the employees' earnings are recorded in separate

Multiple Choice

• revenue accounts.

• liability accounts.

• expense accounts.

• asset accounts.

Federal law mandates which of the following be withheld from an employee's pay.

Multiple Choice

• federal income tax, social security tax, and Medicare tax

• federal income tax, social security tax, Medicare tax, and FUTA

• Federal and state income tax, social security tax, Medicare tax, and FUTA

• federal income tax, social security tax, Medicare tax, and state and local taxes

During the week ended January 11, 2020 an employee worked 56 hours. She is paid $10 per hour, and is paid time-and-a-half for all hours over 40 in a week. She had $150 withheld from her pay for federal income taxes, and $10 withheld for health insurance. The combined social security and Medicare tax rate is 7.65%, and the federal and state unemployment tax rates are 0.8% and 5.4%, respectively. All earnings are taxable. What is the total employer payroll tax expense for the employee's current paycheck?

Multiple Choice

• $48.96

• $88.64

• $39.68

• $0

Employees' payments for federal income taxes withheld and social security and Medicare taxes are periodically

Multiple Choice

• sent directly to the Internal Revenue Service.

• deposited in a government-authorized financial institution.

• deposited in a special-purpose bank account, controlled by the company, until year-end when the funds are sent to the U.S. Treasury Department.

• sent to the local office of the Internal Revenue Service.

The entry to record the Social security and Medicare taxes paid by a business includes a debit to Payroll Taxes Expense.? True or False