Payroll Accounting Class

Chapter 6

Q1: Which of the following taxes is both an employee and an employer tax?

a.OASDI.

b.local income tax.

c.FUTA.

d.federal income tax.

Q2: When payment of accrued SUTA taxes are being made:

a.Payroll Taxes is debited.

b.Cash is debited.

c.SUTA Taxes Payable is debited.

d.SUTA Taxes Payable is credited.

Q3: Which of the following statements is true as pertains to depositing FICA and FIT?

a.they are deposited separately according to a predetermined schedule.

b.they are deposited, together with FUTA, on a scheduled determined by the IRS; it varies between employers.

c.they are deposited quarterly with the Form 941.

d.they are deposited together according to a schedule determined by the IRS; it varies between employers.

Q4: Plein Veterinary has two classes of employees: veterinarians and vet techs. The workers compensation rates per $100 of payroll is $2.91 for veterinarians and $2.15 for vet techs. At the end of the year their actual wages were $810,000 for veterinarians and $253,000 for vet techs. They had paid a premium at the beginning of the year of $26,000. What is the balance due?

a.$29,010.50

b.$0

c.$3,010.50

d.$54,010.50

Q5: When employees actually use their vacation time

a.Vacation Benefits Expense is debited, and Vacation Benefits Payable is credited.

b.Vacation Benefits Payable is credited.

c.Wages Expense is debited and Cash is credited.

d.Vacation Benefits Payable is debited.